Mumbai:
Foreign portfolio investors (FPI) have made a net investment of Rs 2,085 crore so far in August in Indian equities, according to data from NSDL.
The FPIs have made a comeback after a net outflow of Rs 11,308 crore in July.
With the investments in August, the net FPI investment in the equities segment in 2021 now stands at Rs 51,121 crore.
During the last week, the 30-share BSE benchmark jumped 1,159.57 points or 2.13 per cent. On Friday, the benchmark reached its lifetime high of 55,487.79, crossing the 55,000-mark for the first time.
On Friday, Sensex hit its all-time high of 55,487.79 points.During the week, improving macroeconomic data boosted the investor sentiments.
On Thursday, the Index of Industrial Production (IIP) for June showed a rise of 13.6 per cent from a decline of (-) 16.6 per cent reported for the like month a year ago
Further, data furnished by the National Statistical Office (NSO) showed that the Consumer Price Index (CPI) slipped to 5.59 per cent last month from 6.26 per cent in June.
Going ahead, analysts expect the bullish momentum to continue, and foreign portfolio investments too are likely to rise further.
Meanwhile,with corporate earnings season largely over, equity investors would focus on global trends for further direction in a holiday-shortened week ahead, analysts said.
Equity markets would remain closed on Thursday for Muharram.
"The majority of India Inc's first-quarter earnings were stronger-than-expected and in the absence of a major event, global cues are expected to guide the market direction," said Nirali Shah, Head of Equity Research, Samco Securities.
Santosh Meena, Head of Research, Swastika Investmart Ltd said that on the domestic front, WPI numbers will be released on Monday.
"Our market will also have an eye on the behaviour of FIIs and the dollar index," Meena added.
"With positive economic data pointing towards economic recovery, the market is expected to remain bullish in the long term while the possibility of a short correction in the near term cannot be ruled out," said Vinod Nair, Head of Research at Geojit Financial Services.
"Equity market is likely to continue with its strong positive momentum as the economic activities are expected to further pick up pace with the lockdown measures getting relaxed. The result season is now largely over with corporate earnings being in line to better-than-expectations," Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services said.
Apart from rupee-dollar trend and foreign institutional investors' movement, Brent crude would also be watched by investors.
Eight of the 10 most valued companies added a total Rs 1,60,408.24 crore to their market valuation last week, with heavyweights Tata Consultancy Services NSE 3.33 % and Reliance Industries NSE 1.67 % contributing the most amid a bullish trend in equities.
From the top-10 list, State Bank of India and Bajaj Finance were the only laggards.
The valuation of Tata Consultancy Services jumped Rs 56,133.1 crore to reach Rs 12,80,574.59 crore, becoming the biggest gainer among the most valued companies.
Reliance Industries added Rs 35,310.7 crore, taking its market valuation to Rs 13,59,652.06 crore.