Capital market-focused companies experienced significant gains on Monday, with HDFC Asset Management Company rising nearly 7 percent, Motilal Oswal Financial Services gaining about 6 percent, and Nippon Life India Asset Management advancing nearly 5 percent. According to reports from Moneycontrol, the strong performance was driven by positive sentiment around potential foreign investment measures.
The rally was triggered after Finance Minister Nirmala Sitharaman hinted at expanded measures to boost foreign investor participation in Indian markets during an event where she said the government's recent measures were just the 'first step'. As reported by Moneycontrol, Sitharaman stated that measures announced by the government and Reserve Bank of India (RBI) to attract foreign capital were just the beginning, with "Although at the moment it's confined to the bond market, certainly that's not the end of the story. There will be more, We recognize, we need more foreign capital to come in."
The capital market surge occurred alongside a broader risk-on move in equities, with the Sensex climbing over 750 points and the Nifty gaining nearly 1 percent. According to Moneycontrol, investors bought asset managers, brokerages, wealth management firms and market infrastructure companies on expectations that stronger foreign capital inflows could boost market liquidity and investment activity.
Reflecting the broad-based strength across the capital markets sector, the Nifty Capital Markets index rose over 3 percent, with all 17 constituents trading in the green. As reported by Moneycontrol, besides the major gainers, gains were also seen across Nuvama Wealth Management, Groww, Angel One, CAMS, KFin Technologies, CDSL and BSE, demonstrating widespread investor confidence in the sector's prospects. The index was up 3.2% at 5,519.9 at around 3pm on Monday.
