NSE Nifty scored 0.36% (88.55 points) and finished at 24,666.90. BSE Sensex moved 0.22% or 182.34 points at 81,330.56.
“Foreign investors sold largely in the derivatives segment on Tuesday, creating weakness in the first half of the session (Wednesday), but the market has recovered.”
Chohan said the amount of bearish bets foreign portfolio investors built on clever futures on Tuesday was significant and he was paying some attention on Wednesday.
Foreign portfolio investors (FPIs) purchased shares worth net £931 crore on Wednesday as they were marginal buyers of 88 crore the previous day. So far in May, FPI has purchased 11,663 crore worth of stock after purchasing 3,416.08 crore in April. Domestic institutional investors (DIIS) have purchased 316 crore worth of shares.
Other Asian markets have announced stronger performances in easing trade tensions between the US and China. Indonesia and Taiwan rose above 2%, while Hong Kong rose 2.3%. South Korea rose 1.2% and China rose 0.9%. Japan fell 0.1%. “As US-China trade and the recovery in the US market amid the US recovery in the dollar index, it is likely that the US market will limit foreign purchases seen in recent sessions,” Chohan said. At home, the broader market performed better than the blue chip using the Nifty Midcap 150, which advances 1.3% and 1.4% respectively, and the Nifty Small-Cap 250 index. The Nifty Microcap 250 index has increased by 1.6%. Of the 4,125 shares traded on BSE, 2,802 were Advanced and 1,181 shares fell. Pankaj Pandey, Head of Retail Research at ICICI Direct, said: “As the fears of the US-China trade war are receding, broader markets are catching up to the benchmark index.”
