Sensex and Nifty rise as foreign fund inflows boost markets
The Sensex gained 772.75 points on Wednesday, supported by strong FII buying and falling crude oil prices.
The Sensex and Nifty indices closed higher on Wednesday, driven by significant foreign fund inflows and a decline in crude oil prices, according to Moneycontrol. The Sensex rose 772.75 points, or 0.95 per cent, to finish at 81,879.40, while the Nifty climbed 210.40 points, or 0.84 per cent, to reach 25,255.05.
The rally was supported by Foreign Portfolio Investors (FPIs) making net investments of Rs 53,739 crore in Indian equities between November 2 and 9. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the change in FPI stance was triggered by an AI-led sell-off in the US and other markets like South Korea, Taiwan, and Japan.
A drop in Brent crude prices also provided market support. Brent crude was trading at approximately USD 92.44 per barrel, after futures fell to a two-month low of USD 89.16 per barrel on Tuesday. Vijayakumar noted that the drop in Brent crude to USD 92 provides additional macro relief for India.
The Indian rupee appreciated 7 paise to 93.70 against the US dollar. Strong corporate earnings also contributed to the positive sentiment, with The Economic Times reporting that near 24 per cent earnings growth in the Nifty 50 in Q2 is a 12-quarter high.
Sectoral performance was mixed, as all Nifty sectoral indices closed in positive territory except for pharma, IT, and realty. The Nifty Smallcap 100 and Nifty Midcap 100 indices gained 1.6 per cent and 0.81 per cent, respectively.