By IANS,
Mumbai : Foreign funds were a key to the March rally of key benchmark indices at Indian equities markets as they lapped up stocks worth over $1.5 billion during the month, compared to a paltry $18.97 million in February.
According to the data available with the Securities Exchange Board of India (SEBI), foreign institutional investors (FIIs) were net buyers of equities to the tune of $1,540.36 million (Rs.6,897.80 crore), fuelling an over 9 percent increase in the benchmark index of the Bombay Stock Exchange, the 30-scrip sensitive index (Sensex).
The Sensex closed March at 19,445.22 points, up 9.09 percent or 1,621.82 points from the February end’s close of 17,823.4 points. Its peer, the Nifty of the National Stock Exchange too soared 500.5 points or 9.38 percent to close March 31 at 5,833.75 points.
Broader indices too rose handsomely. The BSE midcap index gained 7.84 percent during the month under review, while the BSE smallcap index moved up 4.58 percent.
FIIs had sold stocks worth $1.05 billion in January.
Domestic funds on the other hand seemed to have booked profits in March, with net buys at the end of the month totalling only a meagre Rs.28.3 crore.
“Internals of markets are quite encouraging to stick to positive biasness amidst global concerns. FIIs since sub-5400 levels (of the Nifty) have been significant buyers in cash market and aggressive long builders in index futures,” said a note from leading brokerage firm Angel Broking.