Mumbai– The Indian equity market has been on a fresh record run of late backed by a surge in foreign institutional investments (FII). In the past three days alone, net FII inflow in the Indian capital markets stood at Rs 14,786.57 crore.
On Tuesday, the Sensex crossed the psychological mark of 43,000 points for the first time ever. The surge in the Indian market comes in line with the global markets, after pharmaceutical major Pfizer said its experimental Covid-19 vaccine is more than 90 per cent effective based on initial trial results.
Further, the bull-run started globally along with the domestic markets after it became clear that Joe Biden, the Democratic candidate would be the next US President. This positive trend comes despite the anticipation that Donald Trump’s exit from the White House may trigger a collapse in the stocks markets.
Markets rallied on hopes of fewer regulations, easing of protectionist measures brought in by Trump and a bigger stimulus package for the US economy under a Biden administration. Further, hopes of ease in H-1B visa norms also led to a spike in the IT stocks.
FIIs have been the biggest push for the recent bull-run in the Indian markets. Post the significant outflow in September, foreign funds made a comeback in October and the flow has strengthened further in November.
FII inflows in October stood at $2.5 billion. However, at a time when FIIs have been net buyers, domestic institutional investments (DII) have remained net sellers. In October, DII outflow stood at $2.4 billion, highest monthly outflows since March 2016.
So far in November, net DII outflow stands at Rs 9,826.17 crore, while net FII inflow stands at Rs 17,947.80 crore. (IANS)