- Nifty surpasses its August high of 10,137
- Buying by domestic institutional investors supports 24% rise this year
- Rupee up nearly 6% against US dollar year to date
Here are 10 things to know about Nifty, Sensex surge today:
Strong buying from domestic institutional investors (DIIs) has supported the 24 per cent rally in Indian stock markets this year. According to estimates, they have pumped in around Rs 70,000 crore into stock markets this year till September.
Retail investors are pumping in close to Rs 5,000 crore in mutual funds through Systematic Investment Plans or SIPs, which are investment vehicles offered by mutual funds to help investors park small sums of money regularly.
The Nifty has strong support at 10,000 levels, according to domestic brokerage Angel Broking.
"Continued inflow in domestic funds, benign interest rate environment, stable currency coupled with favorable global cues is driving markets higher. Anxiety in global markets over North Korea has tapered off. Meanwhile, India has received Rs 20,000 crore of inflow in domestic mutual funds in August 17 - an all-time high. We believe while valuations are not euphoric, they are rich vs. long period averages and therefore support from earnings pick-up is critical to sustain these valuations, going forward. We prefer large-caps to mid-caps owing to valuation gaps," said Gautam Duggad, head of research at Motilal Oswal Institutional Equities.
Asian shares hit decade highs today while European markets were also higher as there was relief that the weekend passed with no new provocation by North Korea. However, Pyongyang's nuclear ambitions will be centre stage when US President Donald Trump addresses world leaders at the United Nations on Tuesday.
Other important events which could impact global markets this week: Some details of Mr Trump's tax plans may also emerge while elections in Germany will add extra political uncertainty to the mix.
For markets, this week's main event, however, will be the Federal Reserve's policy meeting on Tuesday and Wednesday, "This week is all about global liquidity, with the Fed widely expected to announce the unwind of its balance sheet on Wednesday," ANZ analysts said in a note.
Analysts say that the rupee is likely to remain supported even if the US central bank decides to pare its stimulus. Inflows from global investors and the RBI's record $400 billion reserves could keep rupee supported, they add.
Among the Nifty50 stocks, Bharti Infratel surged 4 per cent to be the top gainers. Other top gainers included Bajaj Auto (3.6 per cent), Indiabulls Housing Finance (2.7 per cent), HUL (2.7 per cent) and IndusInd Bank (2.7 per cent).
ONGC, Tata Steel and ONGC were among the laggards, ending down around 1 per cent.