Bulls Take Charge of Dalal Street

The last fortnight has been extremely upbeat as Indian benchmark indices, which had been fluctuating in a particular range, had a significant boost and managed to reach all-time highs not only once, but also set new records in back-to-back sessions. Significant FPI inflows, which continued to demonstrate trust in Indian stocks as a result of the country’s improved macroeconomic outlook and the upcoming corporate earnings season, were one of the key drivers of this optimism. Moreover, one of the biggest single-day FII inflows was recorded during the period. While FIIs were the net buyers over the past two weeks, DIIs have turned to being net sellers. 

The DII outflow was recorded at ₹ 8,442.81 crore, whereas the FII inflow was recorded at ₹29,526.60 crore in the past 15 days. The primary market also appeared to be picking up momentum as seven IPOs, including three main board offerings and four from the SME space, were hit on Dalal Street. The IdeaForge Technology IPO drew investors due to its strong demand and was subscribed 106 times on the last day of the bidding. In other news, the Ministry of Finance said that the government collected ₹ 1.61 lakh crore in GST revenue in June, marking nearly 12 per cent year-on-year growth. 

Over the last two weeks, the BSE Sensex soared 3.65 per cent, while the Nifty 50 surged 3.60 per cent. The headline indices gained several boosts from their constituents, whether it was a rally by HDFC and HDFC Bank upon the announcement of the merger details, a strong uptrend by the Bajaj twins, Bajaj Finance and Bajaj Finserv, as a result of their robust business updates, or the reaching of 52-week highs by Titan and Tata Motors! Both HDFC Bank and HDFC recorded significant gains in the earlier sessions of the fortnight. Shares of HDFC will be delisted from stock exchanges on July 13 following the merger of the two entities. Broader indices gained alongside the main indices, keeping small and Mid-Cap bulls active in a bullish market environment.

Indian headline indices are setting fresh highs in backto-back sessions, fuelled by optimism amid robust FII inflows and an expected solid earnings season.

BSE Oil & Gas sector emerged as the best-performing sector with impressive gains of over 6 per cent thanks to strong pushes from Reliance Industries and Oi & Natural Gas Corporation. Automobile industry stocks were also strongly rising as analysts anticipate improved margins due to the advantages of operating leverage. All sectoral indices gained considerably, indicating upbeat market sentiments, with BSE Bankex and BSE Power gaining the least.