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By Malvika Gurung
Investing.com — The Indian market is rising despite the US Fed’s first interest rate hike since 2018 by 25 basis points on Wednesday for curbing soaring inflation.
At 3:20 pm, benchmark indices was trading 1.88% higher and gained 1,112.2 points or 1.96%.
While multiple global factors are fuelling this rise in the domestic market, a major positive development for the latter is a reduction in the number of foreign outflows from Indian shares.
Also Read: Major Global Factors Steering Domestic Market Higher on Thursday
The past few sessions have witnessed foreign portfolio investors buying more Indian shares. A highlight of the development came on Wednesday, when foreign investors bought a net value of Rs 311 crore Indian shares for the first time, after pulling out a record Rs 2.3 lakh crore worth funds since October.
The domestic market has been surging for the 7th out of the past 8 sessions on Thursday, and investors on Dalal Street have gained over Rs 19 lakh crore in the period.
The market resilience despite relentless FPI selling is a new development that has implications for the Indian market going forward, stated VK Vijayakumar from Geojit Financial Services.
Moreover, high-quality bank and mortgage stocks have dropped to major lows due to prolonged foreign outflows, now becoming attractive. Also, increased credit demand and improving asset quality fare well for banks, especially well-capitalized ones like major private lenders and large state-owned ones, noted the analyst.
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