D-Street’s Pre-Diwali Cheer Continues: RIL Jumps & Expert on Rally Insights

By Malvika Gurung

Investing.com -- The domestic market continued its upward movement on Wednesday, opening in green, tracking firm cues from global markets and a drop in oil prices as India is the third largest importer of oil .

Benchmark indices Nifty50 and Sensex opened up to 0.5% higher and were seen trading 0.37% and 0.4% up at the time of writing. Oil and gas, realty and FMCG sectors provided support to the market while PSU banks and IT scrips exerted pressure.

Sectoral indices under the Nifty umbrella traded mixed while writing, with Nifty Oil & Gas in the lead, surging 1.32% while Nifty IT slid 0.5%. Nifty Bank gained 0.21%. 

The most-valued company in India by market capitalization Reliance Industries (NS: RELI ) was the top gainer on the headline index Nifty50, up 2.33%.

According to Dr V K Vijayakumar of Geojit Financial Services, two major factors are supporting the ongoing rally on Dalal Street. The first one is support from the US market, thanks to some excellent quarterly results, and the other one is FII selling getting completely overwhelmed by DII buying. 

Vijayakumar stated that over the last 3 trading sessions, domestic investors have bought a total of Rs 5,290 crore worth stocks in the cash market, far outperforming the equities sold by FIIs worth Rs 1,536 crore.

“This complete dominance of DIIs over FIIs is triggering short covering too. Good Q2 results are imparting resilience in segments like IT and financials. The festive mood is another positive. However, high global inflation and tightening central banks pose headwinds to the rally,” he added.