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Foreign institutional investors (FIIs) bought Indian shares worth 9,000 crore on net basis while domestic institutional investors (DII) sold about 4,000 crore worth of equities, according to the NSE data.

The flow was the highest since 24 February last year, when FIIs recorded highest ever inflow at 28,739.17 crore. April 21, 2015 saw the second largest single-day inflow at 17,488.73 crore.

"Domestic market continued its quest for gains, boosted by FII inflows. However, markets will be sensitive to the Fed Chair's remarks later in the day, as investors are expecting a moderation in the pace of rate hikes. An in-line comment will help to sustain the rally while loosening Covid-19 restrictions in China is providing relief to global markets," said Vinod Nair, Head of Research at Geojit Financial Services.

Mid-July to early-November, barring September, FIIs have turned buyers of Indian equities and have sold onshore Chinese equities through the Northbound Stock Connect link. 

This “buy India sell China" trade indicates FIIs’ inclination to invest in a relatively stable market when markets, reliant on demand from DMs and amid domestic policy uncertainty, are severely impacted, Manishi Raychaudhuri, Asia-Pacific head, equity research and Asian equity strategist at BNP Paribas earlier told Mint.

With a record last day investment, the total FII investment during this month surged to 22,546.32 crore. This flow has been a massive driving force behind Sensex and Nifty hitting fresh highs.

While FIIs were busy buying, DIIs offloaded shares, the seventh highest ever outflow, as per the NSE data available on Bloomberg. For the month, they sold net 6,301 crore shares.

Meanwhile, benchmark BSE Sensex settled above the 63,000-level for the first time today, extending its winning momentum to seventh day amid a largely positive trend in global markets and continuous foreign fund inflows.

The 30-share barometer rallied 417.81 points or 0.67% to settle at 63,099.65, its fresh record closing high. During the day, the benchmark jumped 621.17 points or 0.99 per cent to 63,303.01, its lifetime intra-day peak.

The broader NSE Nifty advanced 140.30 points or 0.75% to end at 18,758.35, its fresh record closing high.

Among the Sensex pack, Mahindra & Mahindra, UltraTech Cement, Power Grid, Hindustan Unilever, Bharti Airtel, Asian Paints, Tata Steel and Titan were major gainers.

IndusInd Bank, State Bank of India, HCL Technologies and ITC were among the laggards.

Meanwhile, rupee rose in November, marking its first monthly gain this year and ending its longest losing streak in nearly four decades as the dollar index came off its historic peak and oil prices tumbled.

The Indian currency appreciated 34 paise to close at 81.38 (provisional) against the US dollar on Wednesday.

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