FIIs pump Rs 4000 crores to fuel three day Sensex rally

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FIIs pump Rs 4000 crores to fuel three day Sensex rally
Sensex28,091.42Sensex Quote-87.66 [0.31%]
Nifty8,691.30Nifty Quote-17.65 [0.20%]
Foreign Institutional Investors (FIIs) have pumped in excess of Rs 4000 crores in the cash market that has contributed to the spectacular rally of 1500 points on the Sensex in three trading sessions. This has propelled the Sensex and the Nifty to record highs.

On Tuesday, FIIs net bought in the Indian markets to the tune of Rs 2000 crores in the cash market, a day after the exit poll results were announced.

This takes their 3-day tally to Rs 4000 crores in the cash market, betting big on the Indian markets. Most of the buying by FIIs has taken place in the Sensex and Nifty stocks, particularly the banking sector.

FIIs have been one of the prime drivers in the Indian market, even as domestic institutions have been selling. On Tuesday, domestic institutional investors net sold in the cash segment to the tune of Rs 649 crores, even as FIIs bought.

This has been the pattern in the last few months, with FIIs being constant buyers, while domestic institutions have been net sellers.

In the month of April 2014, FIIs pumped Rs 9600 crores in the Indian markets on hopes of a stable government. April was the eighth consecutive month of inflows from FIIs.

Market analysts believe that there could be more fund inflows on hopes of a stable government for the next 5 years. Hopes are that the Narendra Modi led government would push the development agenda and hence growth in the coming years has fuelled FII interest.

Read more about: sensex, fiis
Story first published: Wednesday, May 14, 2014, 7:40 [IST]
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