D Street Cheers as Local Funds Go Shopping
and Nifty Midcap 100 hit records in intraday trade, Bank Nifty closes at a high
Mumbai: Domestic investors drove the markets to record levels on Tuesday, more than picking up the slack as foreign portfolio investors (FPIs) continued their exodus and pointing to the scaling of new highs in coming days and weeks if the trend continues — the Nifty for instance is a few points away from its lifetime maximum.
Both key stock indices closed at five-month records, with the Nifty scaling the 8,900-mark for the first time since September.
The market capitalisation of companies listed on the BSE touched an all-time high of ₹ 1.18 lakh crore. Among broader indices, the BSE 500 and Nifty Midcap 100 hit records during the day and the Bank Nifty closed at a high. Fund managers said continued strong liquidity from domestic institutional investors has helped the market shrug off concerns over foreign portfolio outflows and growth slowing due to demonetisation.
Domestic institutional investors (DIIs) bought shares worth ₹ 1,535 crore on Tuesday, taking total purchases this year to ₹ 7,300 crore, while FPIs sold shares worth ₹ 1,436 crore, the most in a day since December.