A strong global rally on robust U. S. economic growth and a surprise Japanese monetary easing program has triggered euphoria at the Indian market which saw successive soaring of stocks, with heavy inflows of foreign money, said local media Saturday.
Indian stocks closed at a record high Friday with the BSE benchmark index Sensex closing at 27,865.83 points, 519.50 points or 1.90 percent up from the previous close of 27,346.33 points.
The market was boosted with strong inflows on the back of higher than expected corporate earnings and optimism over India's growth, said local daily The Pioneer.
The gains recorded by the index made investors' wealth grow by billions of U.S. dollars in single sessions over the past few days, including the giant HDFC, GAIL, Larsen&Toubro and Tata, said the report.
"Much needed reforms by the new government, strong quarter two performance by Indian Inc, Fed's low-interest rate regime combined with Bank of Japan's sudden stimulus announcement, gave markets a sentiment boost," the report quoted Hiren Dhakan, associate fund manger, Bonanza Portfolio as saying.
Indian economy grew by over 6 percent in the second quarter this fiscal year from July to September, the highest for years.
The Business Standard said foreign institutional investors pumped 17.54 billion rupees (280 million U.S. dollars) into market stocks, making their two-day investment tally to over 30 billion rupees (490 million U.S. dollars).