Modi wave bringing foreign investors back into market; FII inflows take Sensex to all-time high

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Updated: April 1, 2019 12:15:30 PM

Even as the Sensex hit a fresh record high this morning, and Nifty just kissing distance away from all-time levels, stock markets experts say that optimism on Narendra Modi's return to power after 2019 elections is propelling the indices higher.

Stock Market, Share Market Live, Stock Market Live, Nifty Live, NSE live, BSE live, Live Market Update, Market Today, Indian Share Market Live, Indian Stock Market Live, शेयर बाजार, स्टॉक मार्केटAt the day’s high Sensex surged past the 39,000-mark for the first time ever to 39,028.67.

Even as the Sensex hit a fresh record high this morning, and Nifty is just kissing distance away from all-time levels, stock markets experts say that optimism on Narendra Modi’s return to power after 2019 elections is propelling the indices higher. “The stock markets are currently behaving in a gravity defying manner. The current rally is driven by the gush of liquidity and also the improved sentiment due to expectations of favourable results from the coming general elections,” Consulting Technical Analyst, Milan Vaishnav told Financial Express Online. On similar lines, Sandip Sabharwal noted that April is a month of results season as well as pre-election moves.  

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At the day’s high Sensex surged past the 39,000-mark for the first time ever to 39,028.67, while the Nifty with intra-day high of 11,715.65, is less that 100 points away from its record high mark. If this government comes back there would be a fair amount of continuity and that will be something that foreign investors would look at very closely, Nandita Parker, Managing Partner, Karma Capital, said in an interview to ET Now earlier last week.

If this government comes back they will hit the road running and there will not be delays in what they want to do next, she added. In the month of March, foreign portfolio investors have poured in a net inflow of Rs 45,981 crore. In February, FIIs had bought stocks worth Rs 15,328 crore. “Liquidity and FII inflows  were the major cause of this up move that we have witnessed over the previous month,” noted Vaishnav. 

Apart from FII flows on fresh optimism of a Modi return, a dovish turn by the US FED and robust economic data from China is keeping holding the rally. A dovish turn by the US FED combined with some positive economic data from China is keeping market sentiments strong. US China trade talks also seem to be progressing with seriousness which is a long term positive,” investment advisor Sandip Sabharwal told Financial Express Online, adding that MPC’s rate decision and any moves by RBI to boost domestic liquidity will be watched with interest as real rates continue to be very high.

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