FIIs mark biggest buy of Indian shares in over 2 months, pump in $1 bn in 15 days

Overseas investors bought Indian shares worth Rs 12.73 billion on Thursday, to mark their biggest daily purchase since December 19, regulatory and exchange data show.

Foreign portfolio investors extended their buying streak to a 15th straight day totalling over $1 billion, helping BSE Sensex rise to record high on Thursday.

They also bought Indian equity derivatives worth Rs 26.28 billion rupees on Thursday, according to National Stock Exchange data.

Traders say US non-farm payroll data due later in the day and India's inflation data next week would be key in deciding near-term direction.

Heavy institutional buying has helped Indian stocks to overcome worries including US Federal reserve tapering, China slowdown and sticky inflation.

Dealers say apart from the undercurrent of a pre-election rally, continued strong foreign flows are a testimony to markets like India being differentiated in the emerging markets space due to improving currency and narrowing current account deficit.

The benchmark BSE Sensex has gained in the month before elections in each of the previous six elections, with the biggest advance coming in 2009 when the Congress-led United Progressive Alliance won a majority.

(Reuters)