Mumbai: This week marked a complete reversal of roles in the Indians stock market, with foreign institutional investors (FIIs) becoming net buyer of an impressive Rs 45,960 crore in all five trading sessions.
FIIs extended their buying streak to a second week after a 10-week selling run, with a single week of inflows more than recouping Rs. 45,162 crore they sold in October.
Domestic institutional investors (DIIs), in contrast, turned net sellers of Rs 24,197 crore, selling in all five sessions and snapping an 11-week buying streak as they booked profits into the sharp move, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
Net institutional buying of Rs 21,764 crore drove the rally, with activity most intense on Thursday and Friday, when FIIs bought Rs 28,724 crore against DII selling of Rs 16,413 crore.
The Indian equity benchmarks extended their winning streak to seven straight trading sessions on Friday, marking the first such run in three years, as heavy buying in banking heavyweights and select earnings-driven stocks lifted market sentiment.
The Sensex jumped 1,718.01 points, or 2.17 per cent, to close at 81,028.02, while the Nifty advanced 493.75 points, or 2.01 per cent, to settle at 25,030.35.
Benchmark indices witnessed one of their strongest weekly rallies ever, gaining more than 8.5 per cent on a weekly basis amid renewed foreign fund inflows, strong domestic earnings, and easing geopolitical tensions along with lower bond yields leading to a sharp decline in crude oil prices, said analysts.
Market participation remained largely broad-based through the week, with strong buying interest across key indices.
In the coming weeks, the sustainability of these foreign inflows will be the key variable, with heavy domestic profit-booking leaving the rally reliant on FII support, said analysts.
The new Samvat opens with a holiday-shortened week, beginning with the Muhurat session on Sunday.
(IANS)
