Despite having a sense of likely hike in Fed rate, foreign instructional investors (FIIs) on Tuesday continued to pour in to the domestic bourses, surging BSE Sensex over 440 points to close at an over 13-month high of 28,343.01, while the broader Nifty went past the psychological 8,700-level to finish at 16-month high of 8,744.35, lifted by positive global cues. Besides, a sustained FII buying, a slew of positive corporate results as well as RBI’s bullish annual growth report also added to positive cues.
“Market regained its strength as FIIs continue to pour into the domestic market despite a likely hike in Fed rate. FII inflow has improved post a muted trend seen last week awaiting the Fed chair’s speech last Friday. Global markets continue to be positive as investors have largely factored an interest rate hike in 2016,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
A firm trading momentum witnessed as retail investors and funds piled up positions in key frontline shares across the sectors led by auto, IT, capital goods, banks, financials, metals, consumer durables, oil & gas, power, realty, teck infrastructure, healthcare, PSUs, energy, utilities and basic materials. The second-line midcap and small-cap companies also witnessed heavy buying; however, the telecom sector saw selling.
Reserve Bank reported a near-term growth outlook for India seems brighter than last fiscal and the economy is likely to expand at 7.6 per cent this year, primarily due to better monsoon, as well as better money in the hands of Government employees owing to the 7th Pay Commission implementation, while it underlined bearish global growth.
The 30-share Sensex resumed at 28,012.46 and moved between a high of 28,478.02 and a low of 28,010.66 before concluding at 28,343.01, showing a gain of 440.35, or 1.58 per cent over its last close. The NSE Nifty also climbed 136.90 points, or 1.59 per cent, to 8,744.35 after trading between 8,750.60 and 8,642.25.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 286.52 crore on Monday, as per provisional data released by the stock exchanges. Among the sectoral indices, auto climbed 1.81 per cent, IT 1.77 per cent, banking 1.49 per cent, finance 1.45 per cent, FMCG 1.41 per cent, healthcare 1.39 per cent, teck 1.29 per cent, utilities
1.26 per cent, capital goods 1.05 per cent, oil & gas 1.14 per cent, metal 1.05 per cent, realty 0.97 per cent and industrials 0.84 per cent. Out of 30-index stocks, 29 scrips ended with gains, while Airtel only registered loss by 2.82 per cent.
