Indian shares closed at their highest level in nearly one month on Wednesday as bluechips advanced on resumption of buying by foreign investors, while forecast of a timely monsoon continued to raise hopes the central bank would lower interest rates in June. Foreign portfolio investors, key behind Indian stocks hitting record high in March, have bought cash shares worth nearly $300 million in the past three days, Thomson Reuters calculations showed. They had sold about $2.5 billion worth of shares over the last four weeks.
The benchmark BSE index and the broader NSE index gained 0.69 percent each, marking their highest close since April 22. Foreign portfolio investors, key behind Indian stocks hitting record high in March, have bought cash shares worth nearly $300 million in the past three days, Thomson Reuters calculations showed. They had sold about $2.5 billion worth of shares over the last four weeks.
Overseas investors had trimmed positions in Indian cash equities but it was still a favoured market, UBS said in a report, citing feedback of 100 investors meeting it conducted globally. India's weather office said on Thursday it expects monsoons to hit the southern Kerala coast around May 30, a timely arrival for farmers worried about dry weather from an El Nino weather pattern this year.
"Rupee and crude have stabilised and hence their is some comfort from FIIs," said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance. But the core of earnings recovery is still weak and that cycle may resume only in FY17, he added. Bluechip stocks, heavily owned by foreign investors led the gains. Housing Development Finance Corp rose 1.7 percent, while HDFC Bank gained 1.4 percent. ICICI Bank rose 1.3 percent, while State Bank of India advanced 2 percent.
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