After six consecutive closings, the Indian market opened on a positive note on Monday. Benchmarks gained marginally in the opening trade as the broader Nifty50 started around 15,300 and the Sensex opened at 51,470.03.
In the broader market, Nifty midcap and smallcap rose by 0.3% and 0.2% respectively
On the sectoral front, Nifty IT gained the most, while Metal index declined over one per cent as other indices trade with marginal gain or loss in the opening trade,
In the pre-open, the Sensex gained over 200 points around 9.05 am as 1 shares advanced and 14 stocks declined on the 30-share index on Monday.
Earlier, SGX Nifty Futures, which indicates opening trade of the Indian market, was trading lower by more than 50 points. Besides, major Asian benchmarks, Japanese Nikkei 225, Hang Seng Index at the Hong Kong Exchange and Shanghai Composite were trading lower by 1.2%, 0.7% and 0.4% respectively in the early trade.
On Friday, the US market ended on a mixed note. Dow Jones shed 38 points, Nasdaq gained 152 points and S&P 500 rose by 8 points on Friday.
Meanwhile, during May FPI sold equity worth Rs 45276 crore and the relentless selling continued in June and till 17th June FPIs had sold equity worth Rs. 28445 crore
Speaking on the continuous FIIs selling, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said “For CY 2022, till 17th June, FPIs have sold equity to the tune of Rs 202244 cr. FPIs have been selling heavily in other emerging markets like Taiwan, and South Korea too. The strengthening of the dollar and rising bond yields in US are the major triggers for FPI selling.”
Since the Fed and other central banks like the Bank of England and the Swiss central bank have raised rates, there is synchronised rate hikes globally, with rising yields, said the expert. “Money is moving from equity to bonds. In India, FPIs continued to sell in financials and IT where their holding is the largest,” he added.