BSE Sensex went up by 11.45% in November 2020 to close at 44,150. Nifty 50 closed at 12,969 in November, higher by 11.40% from 39,614 in October closing.
Expectation of quick arrival of Covid-19 vaccines, slowing of Covid19 infections, abundant liquidity, economic revival and hopes of end to Covid-19 pandemic are the key reasons for strong performance of market in November 2020.
Amongst the BSE sectoral indices almost all indices were strong performers in the month of November. Metal (24.51%), Bankex (23.72%) and Finance (22.58%) were the best performers and apart from Energy all other sectors are positive. Record breaking FPI inflow in November is key reason for outstanding performance in all sectors.
Record breaking FPI Inflows in November 2020:
Foreign Portfolio Investors (FPI) infused highest ever Rs. 60,358 Crore in Indian equity markets in the month of November. FPI’s were net buyers in October as well. It shows that global investors have a strong preference for emerging market of India. FPI Inflows are one of the key drivers of Sensex as can be seen in following chart.
Acknowledgements: RBI Bulletin (www.bulletin.rbi.org.in), SEBI Bulletin (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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