On day two following the US Federal Reserve’s surprise interest rate decrease, foreign investors increased their bets in Indian markets, sending the benchmark Nifty 50 and Sensex indexes to all-time highs.
Undoubtedly, FTSE’s semi-annual rebalancing of its esteemed All-World Index contributed to a portion of the ₹14,000 crore preliminary purchase on Friday by international institutional investors.
The remaining portion was driven by active buying as a result of the US rate drop, which is anticipated to increase capital inflows into developing nations such as India.
FIIs net invested ₹14,064.05 crore on Friday, the ninth highest amount in a single day since FIIs started investing in Indian markets, making investors wealthy by $7 trillion. Of this, ₹7,000–8,000 crore came from investments made by international passive funds, with the remaining amount coming from active buying.
The FTSE All-World Index, like the MSCI, is used by global investors to decide on allocating funds to developed and emerging market stocks. The index undergoes changes twice a year, in March and September.
This time around, brokerage Nuvama estimated ICICI Bank Ltd to have attracted $200 million (about ₹1,670 crore) and Kotak Mahindra Bank Ltd, $87 million ( ₹726 crore).
Before closing 1.48% higher at 25,790.95 on Thursday, the Nifty 50 jumped to a new high of 25,849.25 points on Friday.
After shooting up to a record 84,694.46, the 30-stock Sensex ended the day up 1.63% at 84,544.31 points.
The rupee strengthened by 11 paise to settle at 83.57 against the dollar, while spot foreign gold reached a record $2,609 an ounce as investors holding other currencies expected to see a rise in demand for the yellow metal due to a declining dollar.