A view of the Bombay Stock Exchange. The Indian stock markets saw healthy buying from foreign institutional investors on Thursday.
IANS/Mumbai
Foreign Portfolio Investors (FPIs) continued to invest in the Indian equities market as they bought shares worth $3.87bn in August, with the trade for the week ended on August 28 at yet another record high.
The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (Sebi)to create a new investor category called FPIs, who invested $3.87bn or Rs23,539.61 crore in the Indian equities market in August.
The FPIs had poured in Rs13,110.42 crore or $2.18bn in to the Indian equities market in July.
The Indian markets, which remained closed for trading on Friday on account of Ganesh Chaturthi, saw healthy buying from foreign institutional investors on Thursday.
Data with the National Securities Depository Limited (NSDL) showed that the FPIs had turned net buyers on Thursday to the tune of $87.97mn, or Rs531.90 crore.
“FIIs were net buyers but buying was subdued over the week. Easing of geo-political tensions in Israel-Palestine also helped,” Dipen Shah, head, private client group research, Kotak Securities said.
Domestic institutional investors (DIIs), including banks, development finance institutions (DFIs), insurance and mutual funds, bought net stocks worth Rs730.43 crore on Thursday.
The 30-scrip Sensitive Index (Sensex) of the S&P Mumbai Stock Exchange (BSE), which opened at 26,620.18 points, closed the day’s trade at 26,638.11 points, up 77.96 points or 0.29% from the previous day’s close at 26,560.15 points.
It surpassed the previous high of 26,630.74 points it touched on August 25. This was the seventh consecutive monthly gain of the benchmark index.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed the day’s trade 18.30 points or 0.23% up at 7,954.35 points.
Expectations of stable GDP growth figures coupled with an overall expectation of further reform push by the new government and the quick notifications for the hike in foreign direct investment (FDI) limits in defence and railways also led to positive investor sentiments.