Stock Market: FIIs spoil new-year party; Indices setting up for pre-Budget action

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By S Jha

New Delhi, December 30: Trends showed that the foreign institutional investors book out from the equity markets in the last week of the year. They have been doing it in the US equity markets and elsewhere. On Friday, the last day of the trading, the FIIs tanked the Indian markets to sour the mood before the new-year party.

The FIIs accounted for a net sell of Rs 2951 crores. They were checked by their domestic counterparts. The DIIs accounted for a net purchase of Rs 2266 crores. Sensex and Nifty closed the December month with about four per cent cut. Bank Nifty was also down by less three per cent in December.

The DIIs have been aggressively buying into the equity market, at least in the second half of December. The positive action by the DIIs assert the confidence of the retail investors who are routing their savings into the mutual funds with the SIP mode. This has provided a fair amount of stability to the Indian equity markets.

The turnaround in the financials of the PSU banks has been the story of 2022. The stellar performance of the Bank Nifty has largely been on account of the performance of the State Bank of India, which ran phenomenally in the Thursday session, while its peers such as Canara Bank, bank of Baroda, Punjab National Bank and other continue to be in their dream run on the bourses.

The rollover for the January series has been positive, striking a bullish tone. The traders are betting on a pre-Budget rally in the equity markets. Also, the frontliners such as Axis Bank, Maruti, Infosys, Mahindra and Mahindra, Bajaj Twins, etc., are looking bullish, suggesting that they could bounce from their respective support zone if the markets gain stability and the positive bias. The traders are betting on Nifty scaling its recent high of 18850 to continue the upward journey if Finance Minister Nirmala Sitharaman comes out with positive surprises in the Union Budget, which will be presented on January 30, 2023.

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