FPIs have poured in $2 billion in Indian equity markets in October, which is the highest monthly inflow in the past seven months.
Benchmark indices on Friday extended gains for the sixth consecutive session, amid inflows from foreign portfolio investors (FPIs) and improved investor sentiment.
The benchmark 30-stock index, Sensex, on Friday rose by 35 points or 0.09% to close at 40,165 points. Of the listed stocks in the index, 16 stocks ended the day’s trade in green with IndusInd bank and Tata Steel being top performers, while HDFC Bank contributed maximum to the index gain. Yes Bank, Tata Consultancy Services (TCS) and M&M were the worst performers.
In the week gone by, Sensex rose by nearly 2.8%, largely driven by Tata Motors, Yes Bank and SBI. Tata Motors returned 38% for the week ended November 1, which was led by an improvement in sales of its luxury arm—Jaguar land Rover (JLR) in the Chinese market. Yes Bank and SBI returned 27% and 11.3%, respectively.
Analysts believe the rally witnessed over the past five-weeks could sustain in the short term. “During the last five weeks, the market has rallied near to the all-time high, this trend may continue in the short-term,” said Vinod Nair, head of Reseach, Geojit Financial Services. “However, short-term rally is a point of discussion as the possibility of further stimulus from the government seems limited in the short-term,” he added.
FPIs have poured in $2 billion in Indian equity markets in October, which is the highest monthly inflow in the past seven months. FPIs invested nearly $1.5 billion in the week ended November 1 which was largely due to UK-based Standard Life selling its stake in HDFC Life Insurance in a bulk deal on October 30.
“With FPI participation, broader markets have started performing which should continue next week as well,” said Siddhartha Khemka, head —Retail Research, Motilal Oswal.
Of the 19 sectoral indices complied by the BSE, 9 ended Friday’s trade in green with BSE Metals and BSE Telecom gaining 2.5% and 1.5%, respectively. On account of weak auto sale numbers, BSE Auto fell 0.75%, led by a 3.11% fall as the TVS Motors recorded a 19% y-o-y fall in sales for October.