NEW DELHI: For the last few sessions, both Indian indices- sensex and Nifty- have been hitting record highs almost on a daily basis.
It was no different on Wednesday.The BSE benchmark surged by 474 points to close at all-time high of 67,572.
Similarly, the Nifty rose by 136 points to end at 19,970.The sensex took just three sessions to rally from 66,000 to 67,000 its second fastest 1,000 point rally.It achieved the historic milestone of crossing the 67,000 mark for the first time, primarily driven by consistent foreign fund inflows and several positive factors.
A strong start to the earnings season, a bullish US market, and favorable monsoon conditions contributed to the remarkable surge.Data from the National Securities Depository Ltd (NSDL) revealed that Foreign Portfolio Investors (FPIs) have purchased Indian shares worth 306.60 billion rupees ($3.74 billion) on a net basis in the first half of July.
This marks the fifth consecutive month of FPI purchases, reflecting sustained interest in the Indian market.The continuous inflow of FPI investments has been a crucial factor driving the rally in the blue-chip Nifty 50 and S-P BSE Sensex, leading both benchmarks to achieve record highs.
Notably, the Nifty 50 recorded a nearly 2% increase in the first half of July.Over the period from March to July 15, FPIs have invested in shares worth a total of 1,393.50 billion rupees, contributing to a remarkable 13% rise in the Nifty 50 since March 1.Market analysts have attributed this foreign investment trend to India's strong macroeconomic fundamentals, steady earnings, and concerns surrounding the recovery in China, all of which have made India an attractive destination for foreign inflows.Jio Financial Services (JFS) valued at Rs 261.85 per shareMeanwhile, during a special trading session for Reliance Industries' stock on Thursday, the share price of Jio Financial Services (JFS), the demerged financial services unit, surpassed expectations, settling at a significantly higher value of 261.85 rupees ($3.19).The calculation of JFS' share price was based on the difference between the closing price of Reliance's stock on Wednesday (2,841.85 rupees) and the settling price of Reliance's stock at the end of the special session, which stood at 2,580 rupees per share.Market analysts had initially projected the share price of the renamed entity, Reliance Strategic Investments (to be known as Jio Financial Services), to fall within the range of 160 rupees and 190 rupees per share.As part of the demerger, shareholders of Reliance Industries will receive one share of Jio Financial Services for each share they currently hold in Reliance.(With inputs from agencies)