Liquidity continued to drive Indian equities, which ended the week with 6% gains. The rally was fuelled by European Central Bank (ECB)’s additional fiscal stimulus, continued buying of Indian equities by overseas investors and optimism surrounding the exiting of lockdowns by countries globally.
Friday’s rise in the benchmark indices was driven by banking stocks. The 30 share index Sensex gained 306.54 points or 0.9% to close at 34,287.34. The broader Nifty50 closed at 10,142.15, up by 113.05 points or 1.13%.
The benchmark Nifty gained more than 316 points since Monday’s trading session, NiftyBank as well ended its week higher by 9%, outperforming the benchmark’s gains.
Foreign portfolio investors (FPIs) have pumped in $2.59 billion in Indian equities as on June 4. According to the provisional data on exchanges, FPIs on Friday bought shares worth $12.92 million, whereas domestic institutional investors bought shares worth $6.2 million.
The global rally is fuelled by the anticipation of more stimulus measures such as that announced by ECB on Thursday to help a revival. Indian markets rose in line with its global peers. Asian bourses in China, Taiwan and South Korea were up between 0.4% and 1.43%. Hong Kong’s Hang Seng was up by 1.6%.
European indices, too, were up at the time of press with stock markets in the UK, Germany and France up in the range 1.19-1.9%. Dow Jones mini futures were up by 659 points.
