About 132 S&P BSE-500 stocks clocked their respective 52-week highs in May 2023. These stocks that closed in the green belonged to different sectors, pumped up by the positive outlook in equity markets.
While Nifty reached at an all-time high of 18,758 in November 2022, it slipped southwards from those levels in the month of January, February and March in 2023. The real cause for this slip was related to different macro challenges.
However, the trend witnessed a spike in April and further extending the rally. The S&P BSE Sensex has gained about 2% in May 2023, piggybacking on the consistent buying by foreign institutional investors (FIIs).
FIIs are once again eyeing the Indian equity markets with positive flows witnessed in the last two months. They pumped about Rs 37,900 crore into the Indian equities in May 2023 alone.
The last time such an interest from FIIs with regard to Indian equities was recorded in February 2021, when they pumped about Rs 42,044 crore.
In addition, foreign portfolio investor (FPI) inflows also witnessed a nine-month high in May.
The return of foreign investors is being buttressed the country’s supportive valuations after the correction witnessed in February and March 2023, a positive economic scenario with improving high-frequency indicators, and healthy March quarter results.
From the earlier high, Nifty is at the moment witnessing a dip by only 1%. At the same time, mid- and small-caps are notching a high of 5% and 3%, respectively.
The broad-based recovery in May 2023 was witnessed across multiple sectors. This is the reason why all sectoral indices closed in the green, barring one for the public sector banks.
The biggest recovery was witnessed in auto, fast-moving consumer goods (FMCGs), and the realty index. At the same time, a moderate performance was registered in commodities and metals space.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.