India’s benchmark Nifty 50 index is likely to start the week on a strong note on Monday after three consecutive weeks of losses, buoyed by foreign fund inflows and prospects of further interest rate cuts next year.
The Gift Nifty futures were trading at 26,190 points, as of 7:52 a.m. IST, indicating that the benchmark Nifty 50 would open above Friday’s close of 25,966.4.
The 50-stock Nifty index fell 0.3% last week amid concerns over foreign fund outflows and the rupee’s depreciation.
However, foreign portfolio investors showed signs of return in the last three sessions. They net bought Indian shares worth 18.31 billion rupees ($204.42 million) on Friday, according to provisional data, taking their purchase to 37.76 billion rupees in the last three sessions.
Foreign investors turning net buyers after a prolonged period of selling has provided an additional boost to market confidence, said Ponmudi R, chief executive officer at Enrich Money.
Meanwhile, minutes of the Reserve Bank of India’s December policy meeting showed that a potential moderation in economic growth next year, along with subdued inflation, could open space for more interest rate cuts.
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