Strong FII inflows propelled Nifty to 18,000 . helped to cross

Strong Foreign Institutional Investor (FII) inflows continued to propel the markets along with a moderation in crude oil prices. The fall in the dollar strengthened the rupee, which strengthened the rupee.

Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities Limited said: “The market action was driven by strong global cues and FII buying momentum. In the last one month or so, the return of FIIs in local equities and the fall in the US dollar index have added to the enthusiasm.

Experts say that if the inflation level in the US shows some moderation, then the market may rally further.

Foreign Portfolio Investments (FPIs) that were net sellers of high value equities Net buyers of equities worth over Rs 2.18 trillion during the first half of 2022 25,000 crore between July 1 and September 12. Brent is now trading at $94-95 a barrel, which is well below the level of $120 a barrel seen in June. FPIs were also net buyers of equity value 2,049.65 crore on Monday,

Strong confidence in the stock market has increased in the Indian economy. Analysts say that the domestic economy is showing strength and this is helping in steady growth in Indian equities.

Sugandha Sachdeva, Vice President, Commodity and Currency Research, Religare Broking Ltd, said the rupee rose 0.45% on strong portfolio flows and the dollar index declined from two-decade highs.

The greenback reversed course after a cool-off in inflation and hopes of an eventual softening of the US Fed’s aggressive policy stance. Sachdev said, “Despite concerns of a falling global economy, risk sentiment in the domestic equity market is improving, which supports the strengthening of the rupee. Besides, stable oil prices are supporting the outlook for the Indian currency.

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