While Indian investors are cheering the bull run in stock markets, nearly
3,000 point-rally in sensex post-elections seems to be the handiwork of foreigners. Foreign institutional investors (FIIs) seemed to be the ones doing most of the buying, while domestic institutional investors (DIIs) such as banks, financial houses, insurance companies and mutual funds have largely remained on the sidelines.
From the day markets first opened after election results (May 18) till Thursday (June 4), FIIs have made net investments worth Rs 12,000 crore in stocks with nearly 90% of that money coming in just four days, Sebi data shows. Out of the 14 trading days, which saw the sensex rising from 12,000 to 15,000, FIIs have remained net buyers on 10 occasions. This clearly shows how foreigners are more bullish about India. "The dirty little secret of the Indian economy is that it has actually been performing much better beneath the surface than the China comparison might otherwise suggest. India has long had a much better micro story than China," Stephen Roach, chairman of Morgan Stanley Asia, feels.
The turnover data for DIIs shows how they have not only been aloof to the idea of fresh investments but also remaining invested in the market. The net position after buying and selling done by DIIs is nearly (-)Rs 1,300 crore from May 18 till June 3, data combined for BSE and NSE shows.
Retail investors have largely stayed away. Experts feel many retail investors got little time to enter markets while others endlessly waited to enter anticipating a correction.
3,000 point-rally in sensex post-elections seems to be the handiwork of foreigners. Foreign institutional investors (FIIs) seemed to be the ones doing most of the buying, while domestic institutional investors (DIIs) such as banks, financial houses, insurance companies and mutual funds have largely remained on the sidelines.
From the day markets first opened after election results (May 18) till Thursday (June 4), FIIs have made net investments worth Rs 12,000 crore in stocks with nearly 90% of that money coming in just four days, Sebi data shows. Out of the 14 trading days, which saw the sensex rising from 12,000 to 15,000, FIIs have remained net buyers on 10 occasions. This clearly shows how foreigners are more bullish about India. "The dirty little secret of the Indian economy is that it has actually been performing much better beneath the surface than the China comparison might otherwise suggest. India has long had a much better micro story than China," Stephen Roach, chairman of Morgan Stanley Asia, feels.
The turnover data for DIIs shows how they have not only been aloof to the idea of fresh investments but also remaining invested in the market. The net position after buying and selling done by DIIs is nearly (-)Rs 1,300 crore from May 18 till June 3, data combined for BSE and NSE shows.
Retail investors have largely stayed away. Experts feel many retail investors got little time to enter markets while others endlessly waited to enter anticipating a correction.
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