Sensex rallies on Moody’s report
On Tuesday, the Nifty put on 91.55 points to close at 5727.45 while the Sensex added 1.65% to end the session at 18,842.08 points. Foreign institutional investors continue to shop for Indian equities; with Tuesday’s purchases of $195 million, they have now bought stocks worth more than $19.5 billion so far in 2012, the largest amount in Asia this year. India remains among the best-performing markets in 2012 with the Sensex having posted dollar returns of 16.4%, way above the 7% gained by Indonesia and 9% clocked by Taiwan. The Shanghai Composite has lost 8.3%.
Over the past two to three quarters, both Asia ex-Japan and global emerging market funds have turned overweight on India relative to benchmarks, the former by 1.9% and the latter by 1.0%. Moreover, in a recent report BNP Paribas noted that the sources of FII flows had changed slightly in recent months.
“We are seeing more flows from 'regular' sources, flows from 'other' or unexplained sources have declined from 50% in 1H12
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