Stock markets: FIIs storm riding bull to throw bears out of ring

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By S Jha

New Delhi, November 30: Wednesday was a special day for the stock market, for the investors eagerly waited for the key data from India, the US and Europe. While the numbers came later, the foreign institutional investors brought the gala party in the last hour of the trading, pumping over Rs 9000 crores to send the indices soaring to record highs.

The second quarter GDP growth of 6.3 per cent came as per the expectations of the market participants. The US GDP for the third quarter came at 2.9 per cent, which was higher than the estimates. Inflation cooled down slightly in Europe. The FIIs had a net buy of Rs 9010 crores on Wednesday, while their domestic counterparts sold a net of Rs 4056 crores as per the provisional figures for the day.

In November, the FIIs pumped in Rs 22546 crores in the Indian equity market. This helped the Sensex to gain over three per cent in November. Nifty also gained 3.38 per cent in November, while Bank Nifty had a net gain of 4.7 per cent in November. With the bullish FIIs, the Indian equity markets stayed true to the historical trends when markets remain positive in November, which is also seen to be the case in December.

Mahindra and Mahindra soared over six per cent to lift the indices higher, while heavyweights Reliance Industries, Infosys, Kotak Mahindra Bank, Axis Bank trended higher. The Kirit Parikh committee report’s likely implementation on gas pricing appears to be pushing the oil and gas companies, including Reliance Industries, higher. Hero Moto Corps remained firm in line with the price movement of the two-wheeler major in the recent past. But it was Bajaj Auto which led from the front on Wednesday.

KPI Green Energy, which has already been a massive gainer in the stock market in a short span of time, trended higher after the company announced 1:1 bonus share issue. Jindal Worldwide, Tejas Networks, Data Patterns were some of the scrips which trended higher. Likhita, a gas pipeline infrastructure company, was higher by over 15 per cent, which may be in line with the price movement of the oil and gas scrips.

The highest contributor in the second quarter GDP growth was the hospitality sector, which reported over 14 per cent gain, while the hotel scrips were reflecting the price movement as some of them trended higher such as Taj GVK, Lemon Tree, Orient Hotel and so on.