New Delhi

The rally in Indian stock indices extended for seven straight sessions on Thursday largely on account of the return of foreign portfolio investors to India after multiple months as well as inflation seemingly plateauing.

Sensex traded at 58,618.34 points, up 267.81 points or 0.46 per cent, whereas Nifty traded at 17,476.55 points, up 88.40 points or 0.51 per cent in early morning trade.

Foreign portfolio investors becoming net buyers in Indian stock markets again after nine long months renewed the investors' sentiment.

In July, FPIs bought equities worth Rs 4,989 crore and became net buyers after nine months, National Securities Depository (NSDL) data showed.

Tightening of monetary policy in advanced economies including rising demand for dollar-denominated commodities, and strength in the US dollar had triggered a consistent outflow of funds from Indian markets.

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During the past two weeks, Sensex and Nifty rose over 7 per cent on a cumulative basis. This week, the indices have cumulatively risen 3-4 per cent so far.