Sensex, Nifty eye new peaks amid furious fund buying

FM Nirmala Sitharaman at BSE

Image credit X @BSEIndia

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FIIs buying lead Sensex to new peak while Bank Nifty plays catch up

By S Jha

New Delhi, May 24: Sensex and Nifty are bracing to sustain above all time high after massive short covering led by the foreign institutional investors (FIIs). In the shadow of China flexing muscles against Taiwan, the global cues on Friday remain negative.

The US bourses sold on Thursday. The strong job data in the US downed the investors’ sentiments.

The market participants are growing wary of the US Federal Reserve not pressing the rate cut button so soon. The rate cut hopes have already subsided.

But the Indian bourses are at their respective peaks except for the Bank Nifty. Sensex and Nifty scaled their all time high in the yesterday’s session after the FIIs unleashed massive short covering.

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The FIIs had missed the rally in the Indian equity markets. They sold a net of ₹70,000 crores in the last two months.

The FIIs have substantially reduced their short positions on the Indian markets. They led the bull charge in an all round buying into the heavyweights led by the HDFC Bank, the Axis Bank, the ICICI bank, Maruti, Larson and Toubro, and others.

The Indian bourses are likely to open with minor cuts on Friday morning as per the assessment of the market participants. However, they also state that the dips in the markets will be bought.

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Traders are resorting to buy on dips in the markets. While the bourses have been scaling new highs since last 10 days, some sessions have seen two-direction markets.

Nifty support is around 22750-22800 as per market participants. Nifty Bank is still far away from its peak of 49974. Sensex is trading at an all-time high.

With the FIIs buying into the market, the participants underline that the investors may look for value buying. The FIIs by traditions buy blue chips and also index constituents.

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Defence and rail stocks have been trending high on the street. The growing concerns in the South China Sea may spur demands for the shipyard companies as per the analysts of the sector.

The market participants also underline that the investors are becoming risk averse about the outcome of the Lok Sabha elections. The sixth phase of the polling will be held on Saturday.

Adding to the growing number of scrips splitting, KPI Green Energy Board has decided to split the shares in 1:2 ration. Bharat Dynamics will also go ex-split on Friday.

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