FIIs invest Rs 14,678.3 cr during October, 16.7% of their total investment in 2013
Diwali bang was seen a couple of days before the stock markets as Sensex and Nifty both zoomed past their three-year highs on Wednesday. The benchmark Sensex closed after gaining 104.96 points and closed at 21,033.97, the highest close after November 5, 2010 which was 21,004.96 while the broader index Nifty also surged by 30.80 points to 6,251.70.
Building up on Tuesday's rally, Sensex has gained nearly 464 points in last two sessions. Markets rallied on the back of heavy short covering ahead of the expiry of futures and options October along with high hopes from Fed to delay quantitative easing programme.
Of all the 13 sectoral indices on BSE, 11 indices managed to close with gains. Automobile and public sector indices registered a marginal fall of 0.05 per cent and 0.03 per cent respectively. Markets rally was lead by healthcare and FMCG indices, both of which closed with gains above 1.10 per cent. Technology and power indices also closed up 0.66 per cent and 0.51 per cent respectively.
Foreign institutional investors (FII) continued their buying spree and invested a net Rs 1,016.77 crore in shares on Wednesday, according to provisional data from the stock exchanges. As per the data given by market regulator, Securities Exchange Board of India, FIIs have invested Rs 14,678.3 crore in Indian equity markets during October which is 16.7 per cent of the total investment of Rs 87,905.8 crore done by FIIs in 2013 till now. Total turnover on the BSE fell to Rs 1,951.05 crore as compared to Rs 2,243.47 crore on Tuesday.
Along with stock markets, rupee also added another 8 paise and ended at Rs 61.23 per dollar, the highest level in more than two weeks. The currency also got support from dollar sale by banks and exporters on the back of sustained foreign capital inflows.
Asian stocks ended higher on rising company earnings and expectations the Federal Reserve will maintain the pace of its monetary stimulus. Key indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea rose.
It was the highest level for the local currency since October 11, when it closed at 61.07. "It started gaining strength after the RBI Governor said that they have done enough, given what they know about the economy, and to wait and watch and see what happens. This suggested that there is little room for further rate hikes. Rupee was also supported by sharp rally in the local stock markets," said Abhishek Goenka, CEO of India Forex Advisors.