Indian Benchmarks Extend Rally as Foreign Investors Buy Futures
The Nifty and Sensex advanced for a fourth straight session as foreign investors bought equities and index futures.
Key takeaways
- The Sensex and Nifty each gained 1.6% on Tuesday, reaching their highest closes in nearly two months.
- Foreign investors net bought ₹6,837 crore in Indian equities, according to provisional NSE data.
- Foreign investors net bought ₹4,711.31 crore in index futures, while analysts saw signs of short covering.
India’s Sensex and Nifty rose for a fourth straight session on Tuesday, each gaining 1.6% to reach their highest closes in nearly two months. The Sensex ended at 76,917.85, while the Nifty 50 closed at 23,811. HDFC Bank, up 2.9%, contributed the most to the Nifty’s rise.
Foreign portfolio investors net bought ₹6,837 crore in Indian equities on Tuesday, according to provisional NSE data, while domestic institutional investors sold ₹3,679 crore. NSDL data showed foreign investors had made net purchases of ₹25,400 crore over the previous 11 sessions.
In derivatives, foreign investors net bought index futures worth ₹4,711.31 crore, NSE data showed. Analysts said the decline in open interest in Nifty futures pointed to short covering, or investors closing bearish positions.
Market sentiment also drew support from improving corporate earnings and valuations, according to The Economic Times. Experts cited expectations for lower crude prices, but cautioned that the rally may not become a sustained breakout unless crude stabilizes and India’s macroeconomic outlook improves.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
