US move on toxic assets whets FII appetite for Indian stocks again
The Hindu Business Line, March 26, 2009, Page 1
Our Bureau
Mumbai, March 25 The Obama administration’s recent plan to cleanse toxic assets of up to $1 trillion from the US banks has stoked Foreign Institutional Investors (FII) interest in Indian stocks.
According to the SEBI Web site, FIIs have been net buyers of equities aggregating Rs 2,020 crore in the last six trading sessions. During this period, Sensex has risen by close to eight per cent or 691 points.
On Wednesday alone, according to BSE figures, FIIs bought (net) Rs 348 crore. The benchmark Sensex closed at 9,667.9 points, up 2 per cent over Tuesday’s closing.
Market players said that FIIs are putting their money mainly in those sectors which have been hammered the most in the last few months. Banking, realty, oil and gas are some of the sectors where the FIIs seem to be parking their money at the moment.
“Mr Obama’s $1 trillion package to buy out the toxic assets was instrumental in the large FII inflows in the last one week. FIIs are of the view that the worst is over for the US banks and they have a little bit more breathing space which is why they are now putting their money into risky asset classes”, said Mr Saurabh Mukherjea, Head of Indian Equities at Noble Group.
“Our markets here have been highly co-related with the US markets in the last week, which has led to many fund managers allocating funds to India,” said Mr Alex Mathew, Head of Research at Geojit Financial Services.
“Once a few of these FIIs put their money here, the others will follow suit soon”, he added.
There are 1630 FIIs and 5008 FII sub-accounts registered with SEBI as on March 25.
The Hindu Business Line, March 26, 2009, Page 1
Our Bureau
Mumbai, March 25 The Obama administration’s recent plan to cleanse toxic assets of up to $1 trillion from the US banks has stoked Foreign Institutional Investors (FII) interest in Indian stocks.
According to the SEBI Web site, FIIs have been net buyers of equities aggregating Rs 2,020 crore in the last six trading sessions. During this period, Sensex has risen by close to eight per cent or 691 points.
On Wednesday alone, according to BSE figures, FIIs bought (net) Rs 348 crore. The benchmark Sensex closed at 9,667.9 points, up 2 per cent over Tuesday’s closing.
Market players said that FIIs are putting their money mainly in those sectors which have been hammered the most in the last few months. Banking, realty, oil and gas are some of the sectors where the FIIs seem to be parking their money at the moment.
“Mr Obama’s $1 trillion package to buy out the toxic assets was instrumental in the large FII inflows in the last one week. FIIs are of the view that the worst is over for the US banks and they have a little bit more breathing space which is why they are now putting their money into risky asset classes”, said Mr Saurabh Mukherjea, Head of Indian Equities at Noble Group.
“Our markets here have been highly co-related with the US markets in the last week, which has led to many fund managers allocating funds to India,” said Mr Alex Mathew, Head of Research at Geojit Financial Services.
“Once a few of these FIIs put their money here, the others will follow suit soon”, he added.
There are 1630 FIIs and 5008 FII sub-accounts registered with SEBI as on March 25.
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