Indian Stock Market Rises as FIIs Invest ₹4,581 Crore

The Indian stock market experienced significant gains on November 7, 2023, driven by robust investments from Foreign Institutional Investors (FIIs) and positive earnings reports from key companies. The benchmark BSE Sensex closed at 83,651, up by 434.94 points or 0.52%, while the Nifty 50 settled at 25,623.30, reflecting a 131-point increase or 0.51%. This surge indicates a renewed confidence in the Indian market, particularly in the information technology (IT) and metal sectors.

The Nifty IT index rose by nearly 2%, bolstered by strong performances from major technology firms. Notably, shares of Infosys increased by 2.71% to ₹1,515.50, while HCL Tech climbed 1.88% to ₹1,540.90. The overall market sentiment was further supported by encouraging quarterly results from companies such as Bajaj Auto and Kalyan Jewellers, contributing to a broad-based rally across various sectoral indices.

Sectoral Performance and Key Gainers

Investors witnessed widespread buying across most sectors, with the IT sector leading the way. The Nifty IT index surged 1.94% to 35,797.35, an increase of 679.75 points. Apart from technology stocks, metal and pharmaceutical shares also saw gains ranging from 0.5% to 1%. The banking sector added marginally, with the Nifty Bank index rising 0.21% to 57,999.90. Conversely, the BSE Smallcap index fell slightly by 0.17%, indicating some pressure on smaller companies despite the overall positive market performance.

Among the top gainers on the Nifty 50 were Asian Paints, which rose 1.81% to ₹2,661, and TCS, which added 1.67% to reach ₹3,041.80. Bajaj Finance rounded out the top five gainers with a 1.15% increase to ₹1,078.90. However, not all stocks fared well; Trent shares fell 6.95% to ₹4,305.60, despite reporting an 11.4% year-on-year profit increase.

Corporate Announcements and Quarterly Results

Several corporate announcements had a notable impact on stock performances. Hindustan Aeronautics saw its stock jump by 2.62% to ₹4,748.30 following the signing of a significant deal with General Electric Company to supply 113 engines between 2027 and 2032. Additionally, Swiggy announced plans to raise up to ₹10,000 crore through a Qualified Institutions Placement, with shares trading slightly higher at ₹402.50.

Quarterly earnings from various companies revealed a mixed performance. Bajaj Auto reported a 23.7% surge in profit, reaching ₹2,479.7 crore, alongside a revenue growth of 13.7% to ₹14,922 crore. Kalyan Jewellers impressed investors with a remarkable 99.5% rise in profit to ₹260.5 crore, supported by a 30% increase in revenue. In contrast, Global Health recorded a 21.1% profit rise, but its share price dipped by 2.71% to ₹1,217.55.

Investor Activity and Market Outlook

The market today reflected strong buying interest from FIIs, with net inflows amounting to ₹4,581.34 crore, a significant rebound from previous net selling of ₹3,263.21 crore. Domestic Institutional Investors also contributed positively, investing ₹6,674.77 crore, underscoring robust institutional support for Indian equities.

The Indian rupee remained stable, trading at ₹88.68 to the dollar, showing minimal movement from the previous day’s close. In the commodities market, oil prices increased amid optimism about potential developments in the US government, with Brent crude rising 0.74% to $64.10 per barrel.

Looking ahead, the outlook for the Indian stock market appears cautiously optimistic. The strong earnings reports and continued inflows from foreign investors indicate positive momentum. Nevertheless, market participants are advised to monitor global economic developments, as they may influence market stability and sector performance in the coming weeks.