FIIs Drive Indian Markets to Record Highs with Strong Buying Spree

FIIs Drive Indian Markets to Record Highs with Strong Buying Spree

VoM News Desk | December 1, 2023 | 11:22 PM IST | Breaking News | Follow on Google News

FIIs Drive Indian Markets to Record Highs with Strong Buying Spree

FIIs Drive Indian Markets to Record Highs with Strong Buying Spree

The Indian stock market has witnessed a remarkable turnaround, led by a strong comeback from Foreign Institutional Investors (FIIs). Their renewed interest in Indian equities has propelled the benchmark Nifty 50 to an all-time high, reflecting the country’s robust macroeconomic fundamentals and resilient economy.

FIIs End Selling Streak, Fuel Market Rally

For six consecutive sessions, FIIs have emerged as net buyers in Indian stocks, ending their three-month selling streak influenced by global headwinds. This shift in investment patterns has been a critical driver behind the Nifty 50 reaching a record intraday high of 20,291.55 on Friday, December 1. The consistent buying by FIIs, coupled with domestic institutional investors’ (DIIs) participation, has injected fresh vigor into the Indian stock market.

Significant Inflow from FIIs and DIIs

According to NSE data, FIIs bought equities worth ₹10,522.36 crore while selling ₹8,932.75 crore, resulting in a net inflow of ₹1,589.61 crore on Friday. Similarly, DIIs invested ₹11,173.05 crore and offloaded ₹9,724.97 crore, leading to a net inflow of ₹1,448.08 crore. Analysts had anticipated this shift, expecting FIIs to resume buying to avoid missing out on the potential rally in one of the world’s best-performing large economies.

Underlying Factors Driving the Market

Several factors are contributing to the bullish sentiment in Indian markets. The country’s GDP grew by 7.6% in the July-September quarter of FY24, making it the fastest-growing major economy globally. This strong economic performance, along with upward revisions of India’s growth estimates by global agencies, has attracted FIIs back to Indian equities.

Additionally, political stability indicated by state election exit polls and expectations of a continued BJP leadership in the 2024 general elections have also eased market apprehensions.

Stock Market’s Promising Outlook

The Nifty 50 and BSE Sensex have experienced significant gains, buoyed by the energy sector’s strong performance. Technical analysts view the market’s short-term outlook as favorable for bulls, with Nifty expected to target the 20,500 mark. The combination of domestic strengths and positive global cues suggests a continued “buy on dips” strategy for investors, focusing on selective stock picking.

This resurgence of FIIs, coupled with robust economic data and political stability, paints a promising picture for the Indian stock market’s continued growth trajectory.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.