Foreign investors mop up Rs 12k crore since Mar 22

Foreign funds net sold Rs 691 crore of shares on April 11, dragging benchmark indices down by around 1%. This is the first time in 15 sessions, that foreign investors have been net sellers, after having mopped up nearly Rs 12,000 crore of shares since March 22. For calendar 2011 till date, they have net bought close to Rs 3300 crore of shares. Sanjiv Patni from Prabhudas Lilladher feels that the FII flows to emerging markets have turned positive again and it will be critical to see how they pan out going forward. Despite yesterday's sell-off, Indian equity benchmarks outperformed their global peers - the 50-share NSE Nifty and 30-share BSE Sensex gained nearly 8% each while the global markets gained 2-7%. Geo-political tensions in Middle East and North Africa pushed the Brent crude higher upto USD 126.5 a barrel, but that did not stall the rally in equities. Sudip bandyopadhyay, President at Destimoney Securities said, “Oil is at USD 124-125 per barrel and that’s definitely not good for the Indian economy. It brings in some amount of inflation into the economy. The government spending has to start soon to help push the economy ahead.” Bandopadhyay advises investors to be more cautious as he strongly feels that crude rates will reach another peak post assembly elections and hurt the market sentiment further.

Source: http://www.moneycontrol.com/

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