Bank Shares Shine on surging FII inflows
Th record Foreign Institutional Investors (FII) inflows on account of portfolio management by FIIs besides helping Rupee appreciate significantly over the last month, were also net buyers of equity in the quarter ended September 30, 2010. Due to the surging inflows into the capital market, for the quarter ended September 30, 2010 the holding of shares by FIIs have gone up significantly. Of the 500 index companies of Bombay Stock Exchange (BSE), 49 companies have declared the FII holdings vis a vis the quarter ended June 30, 2010. Stocks in the Banking and Financial Sector have moved up significantly during the quarter, with State Bank of India (SBI) BSE and topping the list of FII money. .
During the quarter ended September 30, 2010 FIIs inflow into the Indian capital market stood around Rs 53,300 crores of which 90 percent at above Rs 43,000 crores went into the secondary market. The other stocks which saw sharp jump in FII holdings were LIC Housing Finance and Andhra Bank The FII holding went up by 9.6% while that of SBI went up by 2,5%, and HDFC Bank BSE by 2.3 per cent during the quarter ended September, 2010. The fueling of the stocks by FII inflows increased the prices of the stock substantially.