Novembers rally is being driven by increasing speculation the Federal Reserve and its global peers have largely finished hiking interest rates and will start cutting next year. Markets price a full percentage point of easing in the US next year, with the cycle starting in June.
In the first fortnight of November, FPIs net sold shares worth Rs 1,414 crore ($170 million), compared to Rs 14,764 crore ($1.8 billion) worth of selling in the previous fortnight, data by the National Securities Depository Ltd (NSDL) showed.
The Japanese yen strengthened against other major currencies in the European session on Monday as European stock markets traded lower, after last week's sharp rally on expectations that falling inflation across industrialized countries will prompt global central banks to start cutting interest rates next year.