Domestic equity markets traded positively on Wednesday, with the Sensex and Nifty experiencing early gains. However, profit booking at higher levels led to a partial retreat in these gains.
Tax exemptions on interest income and capital gains, along with a broader investment universe and the removal of investment limits, have driven record foreign inflows into the government bond market this month.
The U.S. dollar remained near a two-month high on Thursday as investors anticipated further Federal Reserve rate hikes this year, exerting pressure on the Japanese yen.
In today's trade, shares of IFCI, Tata Motors, General Insurance Corp, Corona Remedies, and HFCL are in focus amid various news-driven developments.
The positive sentiment in the domestic markets is partly fueled by the robust foreign inflows into government bonds, which have been encouraged by recent policy changes.
Background
Investors are also closely monitoring the U.S. dollar's movements, as its strength could have implications for global currency markets.
Looking ahead, market participants will keep an eye on the Federal Reserve's policy decisions and their impact on global financial markets.
