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Vaccine boost, record FPI inflows propel markets to life-time high

Ignoring the recent spike in Covid cases, the Sensex jumped 446 points to 44,523.02 and the NSE Nifty index gained 129 points at 13,055.15.

By: ENS Economic Bureau | Mumbai | November 25, 2020 3:13:52 am
An Oxford Vaccine Group researcher in a laboratory in England works on the coronavirus vaccine developed by AstraZeneca and Oxford University. (Source: John Cairns/University of Oxford via AP)

Buoyed by sustained foreign fund flows, domestic markets on Tuesday hit an all-time record high with the NSE Nifty index crossing the 13,000 level as successful vaccine trials boosted the sentiment. Ignoring the recent spike in Covid cases, the Sensex jumped 446 points to 44,523.02 and the NSE Nifty index gained 129 points at 13,055.15.

The bull run is being fuelled foreign portfolio investors (FPIs) who have made the highest monthly buying in November in the last two decades. Foreign investors have pumped in around Rs 53,167 crore in November and invested Rs 1.01 lakh crore in Indian equities in calendar year 2020, aiding Nifty to touch the 13,000 levels.

“The FPI inflow increased considerably especially after the end of the election in the US and weakness in the dollar index. Another major reason behind such a large inflow was the expected stimulus worth trillions of dollars from central banks to revive economies that are hit hard by the Covid-led lockdown,” said Hemang Jani, Head – Equity Strategy, Motilal Oswal Financial Services.

Indications are in favour of the prevailing bullishness to extend further but the pace could be gradual, said an analyst.

Nifty touched another milestone as it crossed the 13,000 level for the first time and settled around the day’s high.

The rupee appreciated 10 paise to close at 74.01 against the US dollar on Tuesday.

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