The market momentum suddenly gathered pace in afternoon trade on expiry day with the Sensex and Nifty shooting up significantly from morning levels. The Sensex has jumped 1,300 points to over 82,600 levels and the Nifty is now cruising past the 25,000 levels for the first time since October, 2024.
Apart from supportive global cues, some of the key reasons why the market is surging today includes-
Open Interest build-up seen at 25,000 levels
Initial data indicates significant Open Interest buildup around 25,000 and the 25,100 levels. Many market observers are of the opinion that this may indicate the broad trend and the levels that market participants perhaps are aiming towards.
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Another key reason why the sentiment across Indian markets is buoyant, is the continued FII buying. FIIs have net bought equities worth over Rs 50,000 crores since April 15. In fact, last week saw the highest FII inflow since July 2024. A string improvement in macro indicators like inflation cooling off, growth in manufacturing has led to expectations of more rate cuts bu the RBI. That apart the dollar has also remained stable against the rupee, significantly off the highs seen in January. This has improved the relative return prospects of the investments made in India.
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The positive sentiment got even more support after a recent survey by Bank Of America indicated that India emerged as the most favored market, perceived as a likely beneficiary of the supply chain re-alignments following the effects of tariffs. Japan relinquishes the top spot and China is now in the third spot from the lowest rank in the previous month. Thailand remains the least preferred market. Sector preferences.
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