Between October 20 and 28, FIIs bought $923 million in equities, according to data from NSDL. Provisional data from the National Stock Exchange showed that on October 31, foreign investors bought around Rs 4,178.61 crore in Indian equities. Foreign institutional investors (FIIs) have bought $1 billion in Indian equities in the past six sessions and analysts believe the buying spree could continue amid hopes that US Federal Reserve may go slow on rate hikes.
Between October 20 and 28, FIIs bought $923 million in equities, according to data from NSDL. Provisional data from the National Stock Exchange showed that on October 31, foreign investors bought around Rs 4,178.61 crore in Indian equities. Markets in October were volatile. However, in the last few sessions it started trading higher. From October 1 to 13, both the Sensex and Nifty were down nearly 0.5% each, but started gaining from then.
Investors were cautious due to weakness in the broader indices as mid- and small-cap companies continued to underperform blue-chip stocks. Since October 13 till date, both the BSE MidCap and SmallCap are up just 3% and 1.2%, respectively. Over that same period, both the Sensex and Nifty gained in 11 out of 12 sessions and rose over 6% each. The Sensex touched the key 61,000-point mark while the Nifty hit the 18,000 mark, just 1% away from its all-time high.
The Federal Reserve meeting will start on November 1 and the US central bank will announce its decision the following day. A rate hike of 75 basis points is already discounted by the market, according to analysts.
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services, said globally markets are looking forward to the Fed commentary after its meeting. If it indicates moderation in rate hikes going forward, markets would respond positively, Vijayakumar said.
"Expectation build-up that the US Fed may be looking to slow the pace of rate hikes have led to markets globally doing well over the last one to two weeks. In India, some FPIs (foreign portfolio investors) who were wary of India's premium valuation and had reduced their holdings now seem to be returning," said Deepak Jasani, head of retail research, HDFC Securities.
Among sectors, buying was seen in PSUs (banks, oil exploration and materials), auto, realty, healthcare, telecom, capital goods and consumer durables by local and foreign investors, Jasani said.
Investors were also positive after the US reported strong Q3 GDP numbers, which surprised on the upside with a 2.6% growth, a stable dollar and continued fall in US bond yields. The dollar index was trading in the range of 109-112 in October. The 10-year US Treasury bond yield has fallen nearly 22 basis points in the past six sessions. Investors are now eying US inflation and jobs data that will be out due later on Tuesday.
Between October 20 and 28, FIIs bought $923 million in equities, according to data from NSDL. Provisional data from the National Stock Exchange showed that on October 31, foreign investors bought around Rs 4,178.61 crore in Indian equities. Markets in October were volatile. However, in the last few sessions it started trading higher. From October 1 to 13, both the Sensex and Nifty were down nearly 0.5% each, but started gaining from then.
Investors were cautious due to weakness in the broader indices as mid- and small-cap companies continued to underperform blue-chip stocks. Since October 13 till date, both the BSE MidCap and SmallCap are up just 3% and 1.2%, respectively. Over that same period, both the Sensex and Nifty gained in 11 out of 12 sessions and rose over 6% each. The Sensex touched the key 61,000-point mark while the Nifty hit the 18,000 mark, just 1% away from its all-time high.
The Federal Reserve meeting will start on November 1 and the US central bank will announce its decision the following day. A rate hike of 75 basis points is already discounted by the market, according to analysts.
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services, said globally markets are looking forward to the Fed commentary after its meeting. If it indicates moderation in rate hikes going forward, markets would respond positively, Vijayakumar said.
"Expectation build-up that the US Fed may be looking to slow the pace of rate hikes have led to markets globally doing well over the last one to two weeks. In India, some FPIs (foreign portfolio investors) who were wary of India's premium valuation and had reduced their holdings now seem to be returning," said Deepak Jasani, head of retail research, HDFC Securities.
Among sectors, buying was seen in PSUs (banks, oil exploration and materials), auto, realty, healthcare, telecom, capital goods and consumer durables by local and foreign investors, Jasani said.
Investors were also positive after the US reported strong Q3 GDP numbers, which surprised on the upside with a 2.6% growth, a stable dollar and continued fall in US bond yields. The dollar index was trading in the range of 109-112 in October. The 10-year US Treasury bond yield has fallen nearly 22 basis points in the past six sessions. Investors are now eying US inflation and jobs data that will be out due later on Tuesday.
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