Mumbai: Falling crude oil prices, slower pace of selling by foreign funds and a steady global market helped the sensex post a 617-point gain on Wednesday, closing at 53,751 with FMCG, financials and IT stocks leading the rally. From its recent low at 51,823, the index has now gained nearly 2,000 points despite a depreciating rupee and weak domestic macro fundamentals, market players said.
According to Vinod Nair of Geojit Financial Services, softening of crude oil prices, foreign funds repositioning as net buyers and strong business data from lenders bolstered optimism in domestic equities. “Crude prices fell over recessionary fears, however, the fall has boosted the appetite for consumption, chemicals, logistics and oil marketing companies as it will reduce the cost burden of these sectors,” Nair said.
On Wednesday, BSE data showed a net foreign fund outflow of Rs 330 crore, after a Rs 1,296-crore net inflow on Tuesday. Market players believe a slowing FPI outflow could on give domestic investors respite from volatility.
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