- BSE Sensex surges 371 pts to cross 21,000-mark, Reliance Industries share price jumps on gas price hikeMarkets, Rs ignore Fed; FII demand fuels rallyIndian Rupee continues to trade strongerYearender: Blue-chips gain ground, small stocks suffer and Kingfisher Airlines falls 72 pct, Spicejet 63 pct
247.95 crore as per the provisional data from the stock exchanges.
The European markets were trading higher as on the news that IMF has raised its outlook on US and the US index futures were also up.
* BSE index closes up 0.1 pct; NSE index gains 0.16 pct
* Infosys falls after another key executive resigns
* Blue chips including ITC gain on foreign buying support
* Realty stocks edge higher on value buying
Indian shares edge up on foreign buying; Infosys falls
(Reuters) Indian shares edged higher on Monday, as blue chips gained on continued foreign inflows despite last week's decision by the U.S. Federal Reserve to start reducing its bond purchases, although a fall in Infosys Ltd capped broader gains.
Foreign institutional investors (FIIs) bought a net of $492.4 million in cash shares in the previous two trading sessions, according to exchange and regulatory data, even after the Fed announced on Wednesday it was trimming monthly bond purchases by $10 billion.
Foreign buying has helped calm nerves in a market that has come to depend on these flows, as overseas funds have net invested $19.9 billion so far this year.
The uncertainty around the QE taper is behind us and the market has digested that news, and compared to other emerging markets, India is definitely well poised to attract incremental FII flows," said S. Krishna Kumar, head equity at Sundaram Mutual Fund.
"We do expect sustained foreign-investor interest, including foreign direct investment, as growth also recovers."
The benchmark BSE index closed up 0.1 percent at 21,101.03 points, while the broader NSE index gained 0.16 percent to close at 6,284.50 for a second consecutive day of gains.
Blue chips gained on FII flows, with ITC Ltd closing 1.3 percent higher. Tata Steel Ltd ended up 1.2 percent, while Oil and Natural Gas Corp closed up 1.4 percent.
Real estate companies, seen as oversold in recent months, rose on value-buying, while public sector banks also made gains after the Reserve Bank of India surprised investors by holding interest rates last week.
Among real estate shares, DLF Ltd closed up 4.3