The country’s stockmarket benchmark BSE Sensex rose 282 points on Friday to close at a 13-month high of 15,670 points, riding a new confidence in Indian economy and politics that attracted foreign institutional investors (FIIs). The broader NSE Nifty rose 65 points to close at 4,636.
In the past four months, FIIs have pumped in Rs 41,521 crore into Indians stocks. “As the funds worldwide rebalanced their portfolio after a clear mandate for the government, we have seen reasonable inflow of money that is going to grow even faster over the next few months,” said Krishnamurthy Vijayan, executive chairman, JP Morgan AMC.
Better than expected corporate results of the first quarter of this financial year helped, particularly in the auto and metals sectors, which have doubled during this period. “The consumption story looks intact for India and the automobiles, consumer durables and FMCG sectors continue to do well,” said Aseem Dhru, CEO, HDFC Securities.
The change in the government’s positive political stance on disinvestment added to the growth momentum. “This (disinvestment) programme is a critical factor in pushing up share prices,” said Divyesh Shah, CEO, Indiabulls Securities.
But India is not alone in this revival. In fact, among the significant economies’ indices, India stands next to China in growth. Since January 2009, the Shanghai Composite has risen 87 per cent, while the Sensex has followed at 58 per cent.