Markets Extend Gains: Nifty Eyes 8,200, Sensex Up 250 Points

BSE Sensex and Nifty extended early morning gains on Friday, the last trading session of the year, as investors continued to scoop up beaten down stocks after the recent correction. The Sensex has steadied itself from the previous three sessions as some analysts deemed the recent selloff as excessive. 

With the deadline for depositing old notes ending today, some analysts are hopeful that the government could announce measures to lift the economy. Market sentiment was also boosted after Finance Minister Arun Jaitley said that government tax collection has gone up sharply, belying fears of sharp slowdown in the economy.

However, the selloff from foreign institutional investors continued to be a drag on Indian markets. Foreign institutional investors had sold nearly $2.6 billion worth of Indian equities in November. So far this month, they have sold over $800 million in Indian equities. 

Some analysts say that the selloff from foreign investors could reverse from next year, given the attractive valuations in Indian equities after the recent correction.

Global financial major Citi has reiterated its December 2017 Sensex target at 30,000.

The gains today in Indian markets were led by banking and FMCG stocks. ICICI Bank, ITC, Axis Bank, and Kotak Mahindra Bank were among the major gainers in the Nifty50 pack, up around 1 per cent. 

At 12:16 am, the Sensex was up 260 points while Nifty was 73 points higher at 8,176.