Sensex Surges to 2-Month High Amid Strong FPI Buying
India’s benchmark stock index, the Sensex, surged over 2,000 points during Friday’s trading session, closing at a two-month high. The rally was fueled by strong foreign portfolio investor (FPI) activity, robust economic indicators, and a positive global sentiment.
FPI Buying Drives Market Optimism
Foreign portfolio investors played a key role in the market’s remarkable performance, injecting substantial capital into Indian equities. Analysts suggest that the renewed FPI interest reflects confidence in India’s economic stability and growth potential, even amid global uncertainties.
Market experts attribute the surge to expectations of sustained GDP growth, declining inflation rates, and government reforms aimed at enhancing business prospects.
Key Contributors to the Rally
The Sensex’s rally was supported by strong performances in banking, IT, and energy sectors. Heavyweights like Reliance Industries, Infosys, and HDFC Bank led the charge, with substantial gains contributing to the overall market optimism.
In addition to FPIs, domestic institutional investors (DIIs) also maintained a steady inflow, further boosting the index. Broader indices, including the Nifty 50, mirrored the Sensex’s performance, recording similar gains and closing in green territory.
Global Sentiment and Outlook
Global market cues, including easing concerns about US Federal Reserve rate hikes and a positive outlook on the global economy, also contributed to the rally. Market analysts predict that continued FPI inflows and a favorable macroeconomic environment could sustain the upward momentum in the near term.
Investors are now looking ahead to key domestic data releases and global events to gauge the market’s trajectory. As the Sensex settles at its two-month high, the sentiment remains optimistic, setting a positive tone for the upcoming sessions.
