A strong FII comeback triggered the purchase of $ 1 billion in shares in just 6 trading sessions in the Indian market

According to NSDL data, foreign institutional investors have purchased $923 million in Indian markets between October 20 and October 28. Approximately Rs 4178.61 crore worth of foreign investments have been made in the Indian market, according to provisional data available on the NSE as of 31 October.

A total of $1 billion has been invested by foreign institutional investors in the Indian market during the last six trading sessions. This trend of buying is likely to continue in the future as well, according to market analysts. There may be a pause in the US Federal Reserve’s rate hikes. Would the global equity market as well as the Indian equity market benefit from this? The NSDL data indicate that foreign institutional investors purchased $923 million in Indian markets between October 20 and October 28. It appears that foreign investors have purchased approximately Rs 4178.61 crore in the Indian market as of October 31, according to provisional data available on the NSE.

The month of October was marked by a great deal of volatility, although the market has gained momentum in recent days. The Sensex and Nifty fell by 0.5 percent between October 1 and October 13, but have since begun to rise again.

The underperformance of mid-caps and small-caps

A weak mid-cap and small-cap index led investors to be cautious. Up to this point, small- and mid-cap stocks have gained a total of 3 percent and 1.2 percent, respectively. Comparatively, out of 12 trading sessions, the Sensex-Nifty closed with gains in 11 of them. A growth of approximately 6 percent has been observed in them during this period. By crossing the level of 18000, the Nifty is within one percent of its all-time high based on the Sensex’s close of 61000.

US Fed comments eyed by global markets

Dr. Vijay Kumar of Geojit Financial Services states that attention now focuses on the US Federal Reserve’s commentary. An increase in interest rates by the US Federal Reserve will have a positive effect on the market if the Fed indicates that it would like to soften its position.

Federal Reserve policy is expected to curtail interest rate increases

In a similar vein, HDFC’s Deepak Jasani has indicated that the market expects the US Federal Reserve to soften its current rate hike. As far as this view is concerned, it appears that global markets have been in a favorable mood for the past 1-2 weeks. On the other hand, the Indian market is once again attracting foreign institutional investors (FPIs), who have been reluctant to invest in it due to its high valuation. As Jasani further stated, PSU banks are involved in the acquisition of government-owned oil exploration companies and materials companies. Apart from this, both domestic and foreign investors are buying in auto, realty, healthcare, telecom, capital goods, and consumer durables.

Being supported by a large number

Meanwhile, the manufacturing PMI figures released today indicate that business activity is strengthening in India. According to the PMI Manufacturing Index for India, the number increased from 55.1 in September to 55.3 in October. Additionally, GST collection reached a record level of Rs 1.52 lakh crore in October. The Indian economy and market benefit from this development.

The results of the September quarter are also generating enthusiasm Moreover, investors have been encouraged by the better-than-expected results for the September quarter. Out of the Nifty companies which have released results so far, 50 percent of the results have either been as anticipated or have exceeded expectations. There have been no worse-than-expected results for more than six Nifty companies. It is noteworthy that both ICICI Bank and Axis Bank have achieved excellent results. On the other hand, there has been a recovery in the margins of IT companies. According to a Bloomberg report, IT companies have got the benefit of cost reduction.

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