Foreign Portfolio Investors (FPI) have turned bullish on Indian markets in Indian stocks in the month of October. Most investments have come in to oil & gas sectoral stocks. For the month of October, these funds have so far net bought to the extent of Rs. 6,189-Cr until October 18, 2020. On Conversely, domestic institutional investors (DII) have net sold in Indian stocks to the extent of Rs 7,347 crores.
One of the main reasons attributes for this bullish trend in Indian stocks is Strong global signals. In fact, US stocks such as the Dow Jones are now a few percentage points away from registering record highs. The equity frontline index Sensex also has now crossed the 40,000 points levels. Most of the gains are witnessed from record lows is due to the rally in Technology oriented stocks such Tata Consultancy Services (TCS) and Infosys Ltd. In addition, Indian major conglomerate Reliance Industries is also one of the stocks that has helped push the indices very close to record highs, from the March lows. It is further expected that Foreign Portfolio Investors or FPIs would continue to buy into Indian marks, as long as global signals keep on going. With the strong rally in stocks, the risk to reward ratio for buying is now not also positive.
Stock market Watch Today: On Monday, at closing bell, the NSE benchmark Nifty ends above 11,850 and Sensex climbed 448 points led by strong momentum seen in financial, metal stocks. Shares of Maharashtra Bank gained after the bank's net profit was up 14 percent to Rs 130 crore. Nifty PSU bank was the top performer, whereas Nifty Pharma, Auto and media were the top laggards in trade.