Strong FII inflows along with domestic political developments sustained the bull run in the Indian stock markets during Wednesday’s pre-noon trade session, with the Sensex crossing a record high of 43,700 in initial trade.
In addition, better-than-expected quarterly results, faster economic recovery as per high frequency data, and development of a Covid-19 prevention vaccine that has reached an advanced stage boosted buyers’ sentiments.
On sector-specific basis, healthy buying has been witnessed in healthcare, auto and banking stocks so far.
Accordingly, the S&P BSE Sensex crossed the 43,700 mark during the initial trade to touch a record high of 43,708.47 points.
However, at 11.30 am, Sensex traded at 43,178.32, lower by 99.33 points or 0.23 per cent from its previous close of 43,277.65.
The Nifty50 on the National Stock Exchange was trading at 12,622.75, lower by 8.35 points or 0.07 per cent from its previous close.
“Strong FII inflows on the back of positive global cues such as the development of a Covid-19 prevention vaccine which has reached an advanced stage, along with clarity on US election results has pushed the markets higher,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, told IANS.
“On the domestic front, political developments in Bihar, where teh NDA made a comeback to power, better-than-expected Q2 results, and faster economic recovery than what was previously expected has buoyed investors’ sentiments.”
“FIIs till now in November have been net buyers of equities worth around Rs 20,000 crore.”