The sensex scaled yet another peak on Friday as foreign institutional investors (FIIs) drove it up by 406 points to a new record closing high of 21,919. The rupee breached the 61-level against the dollar in intra-day trades — the first time in three months. The nifty, too, ended on a fresh high of 6,525, up about 125 points or 1.96%.The BSE Sensex scaled a new peak for the second successive day on Friday, rising to 21,960.89 points, before closing at a record 21,919.79 points, up 405.92 points or 1.89%. It has gained 973 points over the last four trading sessions. The Nifty gained 125.50 points ,or 1.96%, to 6,526.65 points, also a new record.
“The possibility of a Narendra Modi-led NDA government coming to power after the LS elections is fuelling the rally,” said Vinay Khattar, research head, Edelweiss Financial Services, a leading financial services company. Such a government is expected to be more business-friendly than the UPA administration.
Macro-economic factors such as India’s comfortable current account deficit (the gap between dollar inflows and dollar outflows), following stringent curbs on gold imports, rising exports and falling imports, and a perception that the Indian economy may be slowly returning to a higher growth trajectory also buoyed sentiment.
Foreign institutional investors, who have pumped in about $1 billion (Rs6,250 crore) into the market over the past fortnight, are leading the buying frenzy, belying expectations that they would turn cautious and watch from the sidelines as the polls draw closer.
Like the markets, the rupee, too, was bolstered by the dollar inflows of around Rs 2,577 crore pumped in by the FIIs on Friday.
“The possibility of a Narendra Modi-led NDA government coming to power after the LS elections is fuelling the rally,” said Vinay Khattar, research head, Edelweiss Financial Services, a leading financial services company. Such a government is expected to be more business-friendly than the UPA administration.
Macro-economic factors such as India’s comfortable current account deficit (the gap between dollar inflows and dollar outflows), following stringent curbs on gold imports, rising exports and falling imports, and a perception that the Indian economy may be slowly returning to a higher growth trajectory also buoyed sentiment.
Foreign institutional investors, who have pumped in about $1 billion (Rs6,250 crore) into the market over the past fortnight, are leading the buying frenzy, belying expectations that they would turn cautious and watch from the sidelines as the polls draw closer.
Like the markets, the rupee, too, was bolstered by the dollar inflows of around Rs 2,577 crore pumped in by the FIIs on Friday.
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