Indian equity indices continued their rally for the seventh straight session to hit fresh record highs on Wednesday.
The rally was driven by gains in Reliance Industries, ITC and L&T amid persistent foreign fund inflows.
Foreign institutional investors (FIIs) on Wednesday sold stocks of Indian companies worth ₹11,916.30 crore and bought stocks for ₹11,836.42 crore, resulting in an outflow of ₹79.88 crore, according to NSE data.
Domestic institutional investors (DIIs) bought equities worth ₹12,323.18 crore and offloaded shares worth ₹10,951.00 crore, resulting in an inflow of ₹1,372.18 crore, the exchange data showed.
On Tuesday, foreign institutional investors bought shares worth Rs5,223.51 crore, while DIIs sold shares worth ₹1,399.18 crore.
The BSE 30-share Sensex surged 357.59 points, or 0.52%, to settle at a new record of 69,653.73. It rose to 69,744.62 during intra-day.
The broader NSE Nifty climbed 82.60 points, or 0.40%, to hit a fresh high of 20,937.70.
Vinod Nair, head of research at Geojit Financial Services, said: “Post-state elections, market optimism thrives, confirming policy continuity and meeting investor expectations. A robust FII reversal is fuelled by receding inflation and dropping yields in both US and Indian markets. The allure of Indian market gains post-China credit rating downgrade and decline in oil prices was followed by ease in geopolitical tensions.”
“A strong rebound in IT, driven by reduced US recession risks and in anticipation of robust summer demand, fuels the momentum in the power sector. Despite a promising outlook, short-term profit booking may occur due to domestic premium valuation concerns. Further, lingering El Nino risks, a drop in reservoir levels, and reduced sowing may hold RBI to profoundly upgrade H2FY24 growth and reduce future inflation estimates,” added Nair.
In the broader market, the BSE largecap index rose 0.61%, the midcap gauge gained 0.19%, and smallcap advanced by 0.18%.
Among sectoral indices, utilities surged 3%, followed by power (2.41%). While oil & gas jumped 1.96%, the IT index went up 1.48%, capital goods advanced by 1.25%, and tech rose by 1.18%.
Healthcare declined by 0.64%, telecommunications slipped 0.58% and bankex fell 0.50%.
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Published: 06 Dec 2023, 06:32 PM IST