Mumbai: Boosted by strong foreign fund buying, both the BSE sensex and the NSE nifty closed at new highs for the sixth consecutive session on Monday, taking the total gain for the just concluded financial year to 19% for the sensex and 18% for the nifty.
The gains in the benchmark indices came on the back of a $13.4 billion net buying by foreign investors even as mutual funds were net sellers. Significantly, the market gains during FY14 also propelled the total wealth of investors to Rs 74 lakh crore, near the all-time peak of Rs 77.6 lakh crore recorded on November 5, 2010. The gains in the sensex during the year came as 26 of its 30 constituents closed higher, led by Hindalco, Maruti Suzuki and Tata Motors.
One of the highlights of the year was the sharp slide in the market between July and August when the Indian rupee went into a tailspin and touched its lifetime low against the dollar at 68.93 in intra-day trades. From its August 28 low of 17,449, the sensex has rallied a little over 28% to its current all-time closing high level. Since the August dip, as the rupee appreciated about 10% to its sub-60 close now, FIIs have been net buyers in the stock markets.
In addition, falling inflation, improved current account deficit and a gradual strengthening of other economic fundamentals also helped the market, brokers and dealers said. A strong mandate in favour of the BJP in four state elections in December last also helped improved investor sentiment.
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