Indian stock indices extended their positive momentum from the past week and opened in the green on Tuesday, largely due to firm GST collections and continued foreign fund inflows in April. At 9.33 am, benchmark indices Sensex and Nifty traded up in the 0.5-0.6 per cent range. On Monday, there was no movement on the Indian stock exchanges as they were shut for Maharashtra Day.
The gross GST collection in April 2023 was at its all-time high of Rs 187,035 crore, Rs 19,495 crore more than the next highest collection of Rs 167,540 crore recorded in the same month last year. Coming to foreign fund inflows, foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the second straight month after having sold two months on a trot in January and February, the latest data from the National Securities Depository (NSDL) revealed. FPIs bought assets worth Rs 11,631 crore in Indian stock markets in April and Rs 7,936 crore in March.
On Friday, the domestic stock extended gains for the seventh consecutive session, tracking strong global cues as well as stronger corporate earnings. The weakness in the US dollar has once again made Indian and other emerging equity markets lucrative for foreign institutional investors.
Going ahead for fresh cues, investors would eye US monetary policy meeting scheduled for May 2-3. In the US, the interest rate is currently at 4.75 to 5.00 per cent, which was near zero during the initial days of the pandemic and much of the hike was to manage high inflation.
