Sensex, Nifty rally on FPI inflows and improved sentiment

Indian stock markets turned around on Thursday after a negative start in the morning session.

- TBG NETWORK

The markets surged around 1 percent by mid-session due to a strong domestic structural story and FPI buying.

The Nifty index gained more than 250 points to 23,707.45 or 1.15 percent up after opening down 35.35 points or 0.15 percent, while the BSE Sensex also surged more than 950 points to reach 78,007.05 by mid-session, gaining +950.76 or +1.27 percent.

Ajay Bagga, Banking and Market Expert, told ANI "India held up well in the post-April 2 sell-off. There has been a positive rerating of the Indian markets in view of the domestic structural story and lack of external sector fragility. FPIs have turned net buyers this week on the back of rerating rupee strength and the forward outlook of a resilient Indian corporate sector. A normal to above-normal monsoon forecast has strengthened the domestic consumption story. Add to that the monetary easing and the ample domestic liquidity injected by the RBI, that is helping the financial conditions and the market's sentiment."