Indian stock indices started Monday’s trade on a firm note, taking cues from the overall successful G20 Summit in New Delhi.
The consensus on the New Delhi declaration by all G20 member countries despite a divided house given the ongoing war in Ukraine and the West’s sanctions on Russia, the ambitious rail-port economic corridor deal to connect India-Middle East-Europe, and the launch of Global Biofuel Alliance on the summit sidelines seemed to have attracted investors to bet in the market.
Sensex and Nifty were 0.3-0.4 per cent higher from their Friday close of 66,861.16 points and 19,910.10 points, with all sectoral indices in the green. Last week, Indian stocks ended at a high to log their best week in over two months.
Companies involved in railways, ports and infrastructure are the top gainers today.
Moreover, foreign portfolio investors (FPIs) continuing to be net buyers in Indian stock markets for the sixth consecutive month until August supported market sentiment. They bought equity assets worth Rs 1.31 lakh crore cumulatively in 2023, data showed.
"The G20 Delhi Declaration and India’s diplomatic triumph can trigger a continuation of the positive market mood and momentum,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“More importantly, the inclusion of the African Union in G20 and the proposed India-Middle East-Europe Corridor have positive economic and market connotations,” Vijayakumar added.
Citing an example, he said the inclusion of the African Union in G20 is positive news for Bharti Airtel which has a significant presence in Africa.
Going ahead, August inflation data in India and the US, expected to be released on Tuesday and Wednesday are likely to be the next market trigger for fresh cues.
Retail inflation in India rose sharply in July to 7.44 per cent and in the process breached RBI's 6 per cent upper tolerance target, largely due to a sharp spurt in vegetable, fruit, and pulses prices.