FIIs pour in $266 mn in 10 days

MUMBAI, May 14: Foreign investors are pouring money into the Indian markets. The bull run on the stock markets, which continued for the tenth successive day today was fuelled by net investments by foreign institutional investors (FIIs) who bought shares worth $ 266.4 million from May 3 to 13.

The renewed interest in the cyclical and core sector stocks by FIIs has seen the Sensex soaring past the 4,100 mark. During the last two days – May 12 and 13 – FIIs have put in a whopping Rs 464 crore into the Indian equities. In dollar terms this translates into 114 million.

It was on May 11, 1998 that India had carried out three of the five nuclear blasts which had then prompted a massive FII fund outflow from the country for the next six months that followed. The surge in the value of the stocks, especially pivotals has been despite a reasonable amount of selling by the domestic institutions and funds in the past few sessions. All the selling has been absorbed and thus leaving little outstanding position. On the back of delivery-based buying, the core sector stocks including power and power equipment, refinery, banking, construction, cement, heavy engineering and construction have come on their own after a long lull. Even the defensive stocks from the sectors like pharmaceuticals and fast moving consumer goods have been ignored. Doubts are also being raised on the performance and future earnings potential of the Software companies.