Global tailwinds drive up Indian investor wealth by ₹7.3 trillion

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₹2,606.18 crore, while their foreign counterparts or FIIs net purchased shares worth ₹766.52 crore . Overall, investor wealth increased by ₹7.3 trillion, per exchange data, on fresh buying and short covering (closing out bearish derivatives bets). Veteran money managers said the bullish sentiment is likely to continue despite quarterly earnings being in line.

Friday's global market rally was fuelled by consumer spending in the US increasing by 1% on-month in July, widely exceeding the 0.3% forecast by economists surveyed by Dow Jones. Also read | Amid FII selling, retail investors again prop up Indian market The robust consumer data came close on the heels of retail inflation rising by the least in three years last month, which put to rest fears of a US recession that had surfaced earlier on disappointing unemployment data. The Dow Jones had slumped 2.7% over two sessions through 2 August as unemployment rose to 4.3% last month against market estimates of 4.1%.

However, recently released inflation (2.9% in July) and consumer data have resulted in those fears being cast aside by global money managers, who expect the US Fed to cut rates at its 17-18 September policy meeting, something they were not sure of earlier. This global bullishness has rubbed off on Indian stocks with private banks and tech fuelling the rally. ICICI Bank, HDFC Bank, Infosys, TCS (Tata Consultancy Services) and Reliance Industries together contributed more than two-fifths of the Nifty's 397-point gain on Friday.