Gush of liquidity from foreign funds
Foreign funds have been pouring money into Indian markets as there is surplus liquidity across the globe, primarily unleashed by central banks, including those in the US, Japan and the european union. On Friday, as per data from the National Stock Exchange, foreign institutional investors net bought shares worth Rs 1600 crores.
They have been net buyers in Indian stocks for several weeks now, which has ensured our stock indices remain at elevated levels.
Optimism over FDI being pushed through in parliament
Markets began rallying as soon as there were hopes that parliament would function once again and crucial bills, particularly those related to FDI in pension and insurance sector would get through.
Also, encouraging statements from the Finance Minister on things like the National Investment Board have helped.
Sentiments boosted by Moody's and Goldman Sachs
Sentiments were also boosted after Moody's maintained its stable outlook for India. The rating agency said that the outlook on its Baa3 rating for India is stable, citing the country's large, diverse economy and strong gross domestic product growth as supportive of the rating.
Goldman Sachs too upgraded Indian stocks to overweight putting a Nifty target of 6600 points.
Greece debt plan cleared
Creditors of Greece also agreed to a debt reduction paving the way for money for Greece, which also helped improve sentiments across the globe and in India.
All in all, it was a spate of good news for markets across the globe and India. It remains to be seen if the momentum will continue or there could be some profit booking at higher levels.