FIIs hold stock market afloat; metals, PSU Banks shine

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By S Jha

New Delhi, November 4: The Indian stock markets shrugged off the US Fed jitters to return to strong note, with the late hour buying by the foreign institutional investors (FIIs) steadying the uncertain bourses to take them higher. Adani Enterprises reacted positively to its quarterly results to climb by over six per cent, while metals and the PSU Banks were the flavour of the day on Friday.

The US Fed by indicating that it may be aiming at a peak interest rate of five per cent in place of 4.6 per cent earlier estimated had put a break on the stock market rally. But the Indian bourses reacted positively to the US Futures rising higher on account of better job data by netting a quick fire gains in the late hours, helped by the index heavyweight Reliance Industries, SBI, Hindalco, Tata Motors and so on.

Sensex on Friday gained 113 points, while Nifty posted a gain of 64 points. The FIIs logged in with a net buy of Rs 1436 crores. The FIIs have consistently been buying into the Indian equity markets amid assessment that the bourses are oversold. Their domestic counterparts are, however, consistently selling the Indian equity markets, with a net sale of Rs 549 crores on Friday.

The star of the day was Adani Enterprises. The scrip has become a mother ship of value unlocking, which is pumping it to record high, as it closed the day with a gain of 6.76 per cent to Rs 3833. It may be recalled that Adani Enterprises was trading around Rs 90 in 2020. Adani Ports also trended high.

Metals which have on the lines of the IT companies have been out of favour in the current pullback rally staged a smart recover, as the likes of JSW Steel, Vedanta and Hindalco posted smart gains. The PSU banks led by the State Bank of India were in demand. The SBI ahead of its quarterly results posted a gain of two per cent, while the scrip has for the past one week been going higher. Axis Bank and SBI have been clear favourites in the banking space.

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