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Foreign Institutional Investors (FII), who had turned away from the Indian equity market last year, seem to be returning back. Since the beginning of the current financial year, they have already invested more than Rs 1,000 crore into the domestic stocks.
According to the recent data published on the market regulator Securities and Exchange Board of India (SEBI) website, FIIs seem to have embarked on fresh buying mode and made net investments of Rs 1,056.1 crore since April 1.
Significantly, in last fiscal, FIIs had withdrawn nearly Rs 50,000 crore at the domestic stock market, almost equaling the inflow in the last fiscal year.
As per the data on SEBI website, it shows that FIIs' net outflows have been valued at Rs 47,706.2 crore for the period ending March 30 in the financial year 2008-09 as against huge inflows of Rs 53,000 crore in FY'08.
Further, the Bombay Stock Exchange's benchmark index Sensex has witnessed a rally in the past two weeks although the trading sessions have been just five due to holidays in between.
Since the very beginning of the present financial year, Sensex has gained over 900 points or over 9 per cent. On Thursday, the last trading day of the week, Sensex closed at 10,803.86 points. Besides, FIIs have also made net investments in the debt segment to the tune of Rs 620 crore in the first five days of the FY10.
According to the latest data of SEBI, it seems that domestic mutual fund houses are still concerned about the movement of the equity market as they have been net investors of just Rs 38.3 crore in this fiscal.
However, fund houses have put in significantly more amount in the debt segment in the first few days of the fiscal year. They have invested near about Rs 9,000 crore in the debt segment in April so far, the latest data shows.
In the financial year 2008-09, the country's mutual fund industry saw a drop in its value of assets. There was a decline of Rs 37,000 crore in its assets, with top fund house Reliance MF accounting for a little less than one-third of the losses.
Experts said the quarterly earnings figures and the revenue guidance of Infosys would determine the direction of the market in the second half of this week, which has gained substantially in the past five weeks. "Uptrend will continue in the domekstic market only if Infosys guidance is positive. KRIS Head Arun Kejriwal said. The Pioneer
April 13, 2009
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