Sensex crossed the milestone mark for the first time in Tuesday’s market to touch a high of 75,124 points, but profit-taking pulled it lower to close at 74,684.Foreign funds led the buying in Wednesday’s market with a net inflow of Rs 2,778 crore while domestic funds were muted at Rs 163 crore net buying, BSE data showed. At close, BSE’s market cap stood at Rs 402 lakh crore.
According to Vinod Nair, head of research, Geojit Financial Services, Indian markets sustained their upward momentum, although it slightly lagged behind Asian and European counterparts. “Investor attention remains fixated on the impending release of the FOMC minutes and US inflation data later (on Wednesday).”
Following the release of strong US jobs data last week, market players were anticipating a spike in retail inflation that would reduce the chance of a near-term rate cut in the world’s largest economy. “Additionally, Fitch’s recent downgrade of China’s credit rating could potentially reverberate through the global economy, warranting a caution,” Nair added.