Foreign funds continue to make a beeline for Indian stocks. Foreign institutional investors (FIIs) bought shares worth a net Rs 999 crore on Monday, 12 October 2009, much higher than their purchases of Rs 250.70 crore on Friday, 9 October 2009.
The net inflow of Rs 999 crore on 12 October 2009 was a result of gross purchases Rs 3058.90 crore and gross sales Rs 2059.90 crore. The key benchmark indices surged that day led by index heavyweight Reliance Industries (RIL) on optimism for a patch-up between warring Ambani brothers and on stronger-than-expected industrial output data for August 2009. The BSE 30-share Sensex rose 384.01 points or 2.31% to 17,026.67.
Governments and central banks around the globe have injected trillions of dollars in the past year or so to pull the world out of a most severe recession since the 1930s Great Depression. The flood of liquidity has helped boost all investment asset classes from equities to government bonds. FII inflow into Indian stocks has reached Rs 62952.50 crore in 2009 so far as compared to an outflow of Rs 43720.10 crore in the corresponding period last year.
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