Bloomberg: Indian stocks extended gains from a record close ahead of a key economic report later this week as foreign investors pumped their highest amount of funds into the market since March.
The S&P BSE Sensex climbed 0.5% to 41,081.76 as of 9:42 a.m. in Mumbai. The NSE Nifty 50 Index advanced 0.4%, on course for its highest ever close.
Foreign fund’s have invested net $2.27 billion in Indian equities so far this month amid the prospect of more government stimulus to spur slowing economic growth. A report Friday may show the nation’s economic expansion slowed in the third quarter, according to the median estimate of economists in a Bloomberg survey.
“When the liquidity flow from foreign investors is there, it’s a tsunami and we need to enjoy it,” said A. K. Prabhakar, head of research at IDBI Capital Market Services Ltd. in Mumbai. “The bullish sentiment may continue till the end of the year.”
Tahe rupee on Tuesday appreciated by 8 paise to 71.66 against the US dollar in early trade propelled by foreign capital inflows and gains in domestic equity market.
Easing crude oil prices and a weaker greenback in overseas markets also influenced the sentiment, forex dealers said.
At the Interbank Foreign Exchange, the rupee opened strong at 71.67, showing a rise of 7 paise over its previous closing.
The domestic unit further moved up to trade at 71.66 following strong gains in equity markets.
The rupee had closed 3 paise higher at 71.74 in the previous session.
Foreign investors continued to invest in Indian markets amid growing risk appetite for riskier assets.
FPIs remained net buyers in the capital markets, as they purchased shares worth Rs 960.90 crore on Monday, as per provisional data.