Equity benchmarks Sensex and Nifty continued their winning streak on Wednesday, marking the fourth consecutive session of gains for the first time in 2023. While Sensex gained 0.99 per cent or 582 points to close at 59,689, the Nifty index rose 0.91 per cent or 159 points at 17,557. Spot gold prices in India, per 10 gram for 24 carat, touched a high of 62,575.

Foreign portfolio investors (FPIs) net purchased stocks worth ₹806 crore in the cash segment, provisional data showed. FPIs have been net buyers of stocks worth ₹1,128 crore for the current month.

Anticipation that the US Federal Reserve will pause its rate hike is also supporting the global stock market gains. The latest data from the US indicated softening of the labour market and a decline in factory orders, a scenario that has also triggered expectations that the US Federal Reserve could go slow on tightening of monetary policy to boost the economy.

Inflation still high

But in India the RBI is still expected to raise interest rates. “Inflation is still out of control in India due to higher fuel prices despite OPEC’s recent announcement to reduce oil production. Also, we continue to expect that the next policy (RBI) will raise rates by 25 bps due to the unseasonably early rainfall in some parts of the country that have an influence on the crops,” said Sharad Chandra Shukla, Director, Mehta Equities.

Deepak Jasani, Head of Retail Research at HDFC Securities, is of the view that gold prices were high as the dollar eased after the weak US economic data fanned expectations that the Federal Reserve might loosen its monetary policy trajectory (sooner than expected).

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