Stock markets extend gains; FIIs heat up bourses

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By S Jha

New Delhi, November 1: The Indian stock markets continued on the course of firm rally on the back of heavy buying by the foreign institutional investors. The FIIs have been pumping in investments in the Indian markets in the hope that the US Fed wouldn’t be aggressive in hiking the interest rates.

Sensex gained 374 points on Tuesday, while Nifty was higher by 133 points. Nifty has gained over 1250 points in a month, with a gain of more than seven per cent. The Raisina Hills in earlier reports had stated that the traders have been betting on a bullish November series on the basis of the past performance in 2019, 2020, and 2021, while the FIIs had been long at the commencement of the series.

While the domestic institutional investors fared well in anticipating the direction of the market in October when they had a net buy of overRs 9,000 crores, the FIIs are making up for the lags with an aggressive buying, lifting the bourses in gap ups each morning. On Tuesday, the FIIs had a net buy of Rs 2610 crores, while the DIIs had a net sale of Rs 730 crores.

The IT and Pharma scrips trended sharply on Tuesday. The likes of Infosys, TCS, HCL Technology led the IT rally amid the indications that the US would avoid slipping into recession. The pharma pack was led by Sun Pharma, which has decisively broken out, with the scrip making handsome gains in the last two days. Divi’s Laboratories also gained over six per cent. Cipla and Sun Pharma have emerged as the pharma leaders in the current rally.

Surprise package on Tuesday was Adani Enterprises which gained over seven per cent. The scrip in 2020 was at Rs 90, but is now over Rs 3600 a piece, having become a multibagger in quick time on the back of the robust acquisition spree and the new business ventures of the group.

Bank Nifty’s gains were erased after Axis Bank, a heavyweight, came under selling pressure on account of Bain Capital liquidating its 1.24 per cent stake, valued at over $400 million. HDFC Bank and AU Small Finance Bank were the top performers from the banking space. HDFC bank a late starter has made handsome gains in the last two trading sessions.

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