FII buying takes Nifty near record high

Since October 30, the Nifty has gained 5.33 per cent to close at 12,263.55 Friday, and Bank Nifty 12 per cent, with FIIs purchasing Rs 11,434 crore of shares, including Friday provisional numbers, through five sessions this month.

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The range of the market, going by weekly Nifty option contracts, has shifted to 12,000-12,500 from 11,500-12,000.
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MUMBAI: FIIs' relentless buying in cash and index futures this month has propelled the Nifty to within kissing distance -- 1.36 per cent shy -- of its record high of 12,430.5 in January this year.

Since October 30, the Nifty has gained 5.33 per cent to close at 12,263.55 Friday, and Bank Nifty 12 per cent, with FIIs purchasing Rs 11,434 crore of shares, including Friday provisional numbers, through five sessions this month.

Coupled with cash purchases, they have turned net long cumulatively on index futures by 35,787 contracts as of November 6 from being net short 25,396 contracts on October 30.


Nilesh Shah, MD, Kotak Mahindra Asset Management Company, attributes the buying largely to the PM's recent meet with large global institutional investors managing $6 trillion in assets.

"Aside from the Q2 results, which have significantly beaten street expectations, the proverbial icing on the cake was the PM showcasing India as the investment destination of choice to global investors."

The range of the market, going by weekly Nifty option contracts, has shifted to 12,000-12,500 from 11,500-12,000.
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"The buying in cash and futures by FIIs has given our market the fillip to near its record high and I think we are on course to make a fresh high," said Rajesh Palviya, derivatives head, Axis Securities.
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