Monday trade: FIIs buy ₹2,123 cr in Indian market on 8 May, DIIs buy ₹245 cr

The markets on Monday saw strong gains helped by favorable global cues. The Sensex ended the day up by 1.16% while Nifty was up 1.08%. The market witnessed an all-round buying today with banking and financial stock leading. Global cues were largely positive. The foreign institutional investors (FIIs) continued to be net buyers on Monday. On the other hand, domestic institutional investors (DIIs) are net sellers.

Sensex opened 112 points higher at 61,166.09 and rose 800 points to the intraday high of 61,854.19 on May 8. The index finally closed at 61,764.25, up 710 points, or 1.16 per cent while the Nifty closed the day with a gain of 195 points, or 1.08 per cent, at 18,264.40.

While, DIIs purchased ₹6,252.52 crore worth of equities and sold ₹6,007.25 crore — hence an inflow of ₹245.27 crore.

On the foreign capital inflow front, foreign portfolio investors (FPIs) have been pumping money into the Indian financial market since March this year.

So far in May, FIIs have made a buying of a whopping ₹7,651.52 crore, and on the other hand, DIIs have pulled out ₹2489.98 crore from equities.

“Indian equities gained confidence from strong domestic earnings and fading concerns over the US economic slowdown following robust job data. The recent weakness in the US dollar is drawing more foreign funds to the domestic market, with FIIs remaining net buyers for seven consecutive days. The US inflation report, due on Wednesday, is expected to remain around the March level of 5 per cent,” said Vinod Nair, Head of Research at Geojit Financial Services.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities said while the undertone continued to remain bullish, the upbeat US market close last Friday further buoyed the local market sentiment.

“Hopes of interest rate hike cycle reaching its peak and banking woes in the US receding, investors latched upon rate-sensitive stocks of banking, automobile and realty as strong monthly sales numbers are pointing towards a decent recovery,” said Chouhan.

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