Successful G20 Summit Boosts Indian Stock Market: Investors Celebrate Positive Outlook

Indian stock markets kicked off the trading week with a strong start, driven by the positive outcomes of the G20 Summit held in New Delhi. The consensus among G20 member nations, despite the ongoing Ukraine conflict and Western sanctions on Russia, has instilled confidence in investors.

Key highlights of the summit included unanimous support for the New Delhi Declaration, the announcement of an ambitious rail-port economic corridor connecting India, the Middle East, and Europe, and the launch of the Global Biofuel Alliance. These developments have drawn investors to the market, resulting in a 0.3-0.4% increase in both the Sensex and Nifty indices from their Friday closing levels of 66,861.16 and 19,910.10 points, respectively. This marks the best week for Indian stocks in over two months.

Companies involved in railways, ports, and infrastructure have seen substantial gains, with foreign portfolio investors (FPIs) continuing to be net buyers in the Indian stock market for the sixth consecutive month. In 2023 alone, FPIs have collectively invested Rs 1.31 lakh crore in equity assets.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed optimism, stating, "The G20 Delhi Declaration and India's diplomatic triumph can trigger a continuation of the positive market mood and momentum." He emphasized the economic and market benefits of the inclusion of the African Union in the G20 and the proposed India-Middle East-Europe Corridor.

For instance, Bharti Airtel, with a significant presence in Africa, stands to benefit from the African Union's inclusion in the G20. Looking ahead, market focus shifts to the release of August inflation data in India and the US, expected on Tuesday and Wednesday, respectively, which could provide fresh cues. July witnessed a sharp increase in retail inflation in India, reaching 7.44%, surpassing the RBI's upper tolerance target of 6%, primarily due to rising prices of vegetables, fruits, and pulses.

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