Key indices at 5-mth high on unabated FPI inflows
Rising for 2nd consecutive session, key indices climb to 5-mth highs on FII inflows, gains in FMCG shares; Foreign investors invested over Rs23,152 cr this month so far
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Mumbai: Benchmark indices Sensex and Nifty gained around half a per cent to close at nearly five-month high levels on Monday following continuous foreign fund inflows and firm trends in Asian and European markets.
Rising for the second straight day, the 30-share BSE Sensex climbed 317.81 points or 0.51 per cent to settle at 62,345.71, the highest closing level since December 14. During the day, it rallied 534.77 points or 0.86 per cent to 62,562.67. The broader NSE Nifty gained 84.05 points or 0.46 per cent to end at 18,398.85 points, a level not seen since December 20, 2022.
“Domestic benchmark indices are marching ahead driven by favourable developments such as declining inflation levels, steady foreign inflows, and in anticipation of robust earnings growth on a QoQ basis next quarter, due to drop in global commodity prices,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The rotational buying in heavyweights from the key sectors viz. banking, financial, auto and FMCG is helping the indices maintain a positive tone despite mixed global cues. And, indications are in favour of the prevailing trend to continue,” said Ajit Mishra, V-P (technical research), Religare Broking Ltd.
Foreign Institutional Investors (FIIs) were buyers on Friday as they bought equities worth Rs 1,014.06 crore, according to exchange data.
Foreign investors have shown strong buying interest in Indian equities in May and invested more than Rs 23,152 crore in the first fortnight.
