MUMBAI: Benchmark stock market indices opened higher on Thursday, with the Sensex rising more than 200 points and the Nifty trading close to the 24,000 mark, as banking stocks gained in early trade, as per media reports.
The BSE Sensex was at 76,814.73, up 244.38 points, or 0.32 per cent, while the Nifty was at 23,971.35, gaining 56.90 points, or 0.24 per cent, around 9:23 am.
Banking stocks were among the key gainers after banks reportedly mobilised a record $127 billion through the Reserve Bank of India’s concessional FCNR(B) swap facility. The broader mobilisation under the facility stood at around $136 billion, including other foreign exchange instruments.
Market analysts said the large foreign currency mobilisation could support the rupee and improve investor confidence. A slight easing in US bond yields was also seen as a positive factor for market sentiment.
The inflows could help stabilise the rupee and encourage foreign institutional investors (FIIs) to continue buying Indian equities, analysts said. Improving growth and earnings prospects may also support market sentiment.
The banking sector could benefit from the large FCNR(B) mobilisation, which analysts said may help improve banks’ net interest margins (NIMs).
The market also remained focused on Wednesday’s decline, when the Nifty fell 141 points despite institutional investors reportedly remaining net buyers. Institutional investors bought shares worth around Rs 9,500 crore, including Rs 6,688 crore by FIIs and Rs 2,812 crore by domestic institutional investors (DIIs).
Analysts attributed much of the selling pressure to retail investors, proprietary traders and bearish positions, adding that the trend could reverse in the current session.
Investors will track movements in the rupee, US bond yields, foreign fund flows and global cues for further direction.
Disclaimer: This content is based on media reports and market data available at the time of reporting and is for informational purposes only. Investors are advised to consult a qualified financial expert before making any investment decisions. VisionMP is not responsible for any loss arising from the use of this information.
