Bombay Stock Exchange
Bombay Stock Exchange

The Indian stock market continues to defy odds and continues rising without institutional support. The market at best is mirroring the global sentiments, ignoring the domestic issues.

Sensex closed 3.05% higher intraday to close the April series at 33,717.62 while Nifty closed above 9,850, rising 3,21% for the day. Tata Motors (up 19.32%), UPL(up 16.49%) and ONGC (up 13.33%) were the major gainers while Sun Pharma (down 2.76%), HUL (down 1.65%) and Cipla (down 1.12%) were the major losers of the day.

Despite being amid the humongous rally, it is surprising how domestic, as well as international institutions, turned net sellers from midway of April. Foreign Institutional Investors (FIIs) ended the month with net selling of around Rs 7,100 crores while Domestic Institutional Investors (DIIs) loaded off Indian equities worth Rs 1,403 crore in April.

As a matter of fact, the share of institutional volumes as a % of the total volume has declined to as low as 36%, signalling that weaker hands are driving the rally. Active institutional participation in May could propel Nifty to the level around 10,500 while lack of interest from them could encourage short-selling, resulting in a choppy and volatile series.

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