Fii’s bought Rs. 10.75 crore worth of Indian shares on Thursday to eend their five-day selling streak totalling 3000 plus crore in secondary markets
Analysts say that with the Nifty taking support at its 200 day moving average, any follow-up buying by FIIs will help reverse the short-term trend which had turned down.
Gains also tracked higher global shares that further recovered from a steep two-week selloff, buoyed by expectations that a January U.S. jobs report due later on Friday will soothe recent concerns about the pace of global growth.The recent bout of FII selling is more related to global factors of tapering and China slowdown, not due to India issues.The most likely outflows are those of short-term ETF money, not long-only selling.
Both indexes marked their highest close since January 31, but it was also a second consecutive weekly decline amid emerging-market risk aversion.
The Sensex rose 0.32 per cent, or 65.82 points, to end at 20,376.56. It ended 0.7 per cent lower for the week.
The broader NSE index rose 0.45 per cent, or 26.90 points, to end at 6,063.20. It marked a weekly fall of 0.4 per cent.
Consumer inflation data for January due on Wednesday and wholesale inflation data on Friday will be the next key domestic triggers.
Tata Steel jumped 6.4 per cent after traders took positive cues from ArcelorMittal SA December-quarter results. ArcelorMittal reported an operating profit of $1.9 billion, higher than an estimate f $1.801 billion.
Among other Index stocks, Larsen and Toubro rose 0.9 per cent, while Sun Pharmaceuticals rose 2.9 per cent.Tata Motors rose 0.7 per cent on optimism ahead of its December earnings on Monday.
Aurobindo Pharma ended 2.8 per cent higher. It earlier rose to an all-time high of Rs. 539.85 after posting a four-fold increase in profit toRs. 417 crore for the December quarter, beating some analysts estimates.
Reliance Infrastructure rose 2.1 per cent after the Supreme Court on Friday ordered state-run power producer NTPC to continue supplying power to distribution companies in the capital, New Delhi, until March 26, a move that averts a blackout next week.
Hexaware Technologies rose 4.9 per cent after the company's quarterly net profit rose by 56 per cent to Rs. 103 crore, beating expectations.
Among stocks that fell, Bharat Heavy Electricals fell 0.9 per cent on short positions in the futures market.
The high costs charged for lending and borrowing on BHEL indicate shorts are building up, say analysts.