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Foreign portfolio investors net bought shares worth 5,393 crore on Thursday, taking their total purchase tally for May to 17,142 crore. In April, they were buyers to the tune of 3416 crore. Domestic institutions were sellers to the tune of 1,668 crore on Thursday.
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Renewed India-Pakistan tensions have sparked investor interest in Indian defence stocks, with companies like Cochin Shipyard and Bharat Dynamics seeing significant gains. Anticipation of increased defence spending and potential export opportunities are driving this surge. While long-term prospects remain strong, some fund managers caution about the current elevated valuations and the pace of the rebound.
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The RBI's bond purchase OMO witnessed robust demand, with bids nearing 71,194 crore against a notified 25,000 crore. The 2035 paper attracted the highest interest. Market participants are less aggressive in selling, anticipating further OMOs. Another OMO is scheduled for May 19.
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