Representational image
Guwahati, Oct 11: Nifty extended its gains for the second consecutive day, buoyed by positive global trends, according to Deepak Jasani, Head of Retail Research at HDFC Securities.
As of the close of trading on Wednesday, the Nifty index posted a robust 0.62 percent increase, surging by 121.5 points to reach 19,811.35, while the Sensex settled at 66,473.05, registering a 0.60 percent gain of 394 points.
Market activity on the NSE exhibited sustained growth with each passing day. Notably, the Small-cap index outperformed the Nifty, maintaining a robust advance-decline ratio of 1.98:1.
The positive sentiment in global equities played a pivotal role in this bullish trend. Investors found encouragement in expectations of Chinese economic stimulus measures and a decrease in bond yields. This optimism was further fueled by the forthcoming release of the latest Federal Reserve meeting minutes and US inflation figures, as observed by Jasani.
The upturn in investor risk appetite was underpinned by dovish comments from U.S. Federal Reserve officials, raising hopes that the central bank might delay any interest rate hikes this year. However, European stock markets faced headwinds, as they grappled with disappointing corporate news, impeding their rally.
On the domestic front, investments into actively managed equity schemes in India saw a decline of 30.4 percent month-on-month in September, totaling Rs 14,091.3 crore. The drop in investments in Small-cap funds and continued outflows from Large-cap schemes contributed to this decrease. On the other hand, Systematic Investment Plan (SIP) contributions to the mutual funds industry in September increased to Rs 16,420.06 crore, surpassing the figure of Rs 15,813.5 crore recorded in August. Consequently, assets under management (AUM) for SIPs reached Rs 8.70 lakh crore, a notable increase from the previous month's Rs 8.47 lakh crore, as pointed out by Jasani.