FIIs bet big on BJP victory; buy shares aggregating Rs 2473 crores

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FIIs bet big on BJP victory; buy shares aggregating Rs 2473 crores
Foreign institutional investors are betting big on a BJP victory in the forthcoming general elections in 2014.
On Monday, a day after the results were declared foreign funds net bought shares in the cash market aggregating Rs 2473 crores. This is the highest level since September 19.

Many foreign funds and domestic brokerage houses have said the chances of BJP coming back to power led by Narendra Modi are bright.

According to a report in the Economic Times, CLSA said the results of the four state elections show that there is a severe anti-Congress sentiment among the voters and they prefer clean governance over populism. "It is critical for BJP to secure 200 seats on its own, for which the party has to improve significantly in Uttar Pradesh, Bihar, and Maharashtra to get that magic tally," Mahesh Nandurkar, executive research at CLSA, said in a note.

Bank of America Merrill Lynch has said that the state elections place the BJP as a frontrunner.
FII net purchases in the calendar year 2013, have crossed the Rs 1,00,000 crores mark in 2013 They bought shares worth a net Rs 1,28,360 crores in calendar 2012.

These institutions may continue to bet big on the Indian markets until the elections. However, the only fear for the markets remain the QE3 Tapering by the Federal Reserve. The Federal Open Market Committee (FOMC) would meet on Dec 18 and 18 to decide on its future course of action.

Read more about: fiis, bjp victory, merrill lynch, clsa
Story first published: Tuesday, December 10, 2013, 10:31 [IST]
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