Foreign institutional investors (FIIs) have shifted gears and invested in Indian equities for the second straight session on Friday, September 15, after domestic equity benchmarks Sensex and Nifty scaled to lifetime highs. The domestic institutional investors (DIIs) were also net buyers and infused ₹1,938.57 crore in Indian stocks today.
As per the NSE data, FIIs cumulatively bought ₹9,870 crore of Indian equities, while they sold ₹9,575.31 crore — resulting in an inflow of ₹294.69 crore. Meanwhile, DIIs infused ₹6,943.14 crore and offloaded ₹6,993.94 crore, registering an outflow of ₹50.80 crore.
On Friday, domestic equity benchmarks Sensex and Nifty climbed to fresh lifetime highs, propelled by a rally in global markets and renewed foreign capital inflows. Sensex closed at 67,838.63, up 320 points, or 0.47 per cent, while the Nifty settled at 20,192.35, rising 89 points, or 0.44 per cent.
Both indices ended at their fresh closing highs. The Sensex rose for the eleventh straight session, adding 4.64 per cent over the period, logging its longest series of daily gains since October 3, 2007. On the weekly front, the BSE benchmark jumped 1,239.72 points or 1.86 per cent, and the Nifty climbed 372.4 points or 1.87 per cent.
Besides, buying in telecom, auto and tech stocks also helped markets to settle with gains, said traders. Auto stocks climbed 1.58 per cent to a record high, powered by a 5.9 per cent jump in Bajaj Auto after BofA Global Research upgraded the stock to “buy” from “neutral”. The high-weightage IT index rose 0.94 per cent, helped by rising expectations of a rate hike pause from the US Federal Reserve next week.
FIIs renewed buying interest: Will the momentum continue?
Analysts reckon that even though the undercurrent of the market is bullish the high valuations and new risks like surging crude and rising dollar index can impact the market negatively. Brent crude at $94 is a major macro worry which the market cannot ignore for long.
‘’The rising dollar index which has breached 105 and the attractive US bond yields (10-year at 4.28 per cent) will force the FIIs to sell aggressively soon,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Where is Nifty headed?
Analysts observed that Nifty has been scaling new highs over the last few sessions as the sentiments strengthened post the successful G-20 execution which is likely to bolster India’s economy in the global arena.
Further lower CPI and wholesale inflation in India are comforting amidst the global inflationary scenario. ‘’Thus we expect the overall positive momentum to continue especially in the large cap while sectoral rotation is likely to be seen in the broader market,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Rupak De, Senior Technical Analyst at LKP Securities said that Nifty continued to exhibit strength as the index reached new highs. ‘’Strong Put writing at 20,100 has further bolstered positive sentiment in the market. The trend is expected to remain positive as long as the Nifty remains above the 20,000 mark. In the short term, there is potential for the Nifty to move towards the 20,480-20,500 range on the upside,” said De.
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Updated: 15 Sep 2023, 08:50 PM IST