Sustained FII inflows likely to push market up: Analysts

 
“Investor sentiment is pretty upbeat on Dalal Street. The month of September has witnessed an over 10 per cent rally in the markets. Going forward, we are likely to see continued inflows from FIIs, as the funds continue to remain bullish on Indian markets,” Consortium Securities AVP Vishwesh Choudhary said.

Brokers believe that despite certain weak economic data on the domestic front, the sharp rise in the Sensex and Nifty indicates the intensity of the current momentum.

Betting big on the Indian stock markets, FIIs have made a record investment of $ 19.43 billion (Rs 89,116 crore) in local equities so far this year, as per data available with capital markets regulator Sebi. These huge inflows are pushing the benchmark indices to new highs almost every day. The Sensex regained the magical 20,000-mark last month on the back of the robust FII inflows.

The dream rally continued in the Indian equity markets during the previous week as the Sensex and Nifty touched new highs for 2010. On a week-on-week basis, the Sensex gained 400 points, or 2 per cent, to 20,445, while the Nifty rose by 125 points, or 2.1 per cent, to finish at 6,143. The rollover to the October series after derivatives expiry on September 30 also showed some indications of a bias towards the long side. Any small correction in the market has been attracting short-covering, which is also giving good support to the markets, analysts said.