India's stock market on positive stride

Wednesday 24th August 2022 06:25 EDT

Four months after the Bombay Stock Market Index (sensex) recorded its highest level for the current fiscal, it reclaimed the psychologically important 60k level and closed just about half a per cent off that FY23 peak. With crude prices sliding, monthly inflation numbers showing a decline and foreign funds making a comeback into India, the index added another 418 points, its fourth consecutive session of gains, to close at 60,260.
On April 4, the sensex had ended at 60,612 points. At its current close, the sensex is about 3% away from its lifetime high of 62,245 points, recorded on October 19, 2021.
“India has been an outperformer over the last 45 days relative to both EM (emerging market) and DM (developed market) peers,” said Emkay Global Financial Services head (sales trading) S Hariharan. The recent inflows from foreign portfolio investors (FPIs) came after nine consecutive months of net outflows.
In the past few weeks, investors on Dalal Street also got a boost from sliding crude oil prices. After scaling a multi-year high at around $125-per-barrel in early June, Brent crude prices are now down by about 25%.
It is the biggest import item for India and petro products are a major contributor to inflation numbers. Consequently, the slide has enthused market players with the hope that the worst may be over for India in terms of some of its macroeconomic fundamentals like trade deficit and inflation.

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