Global funds lift stock market for moon walk as money rains on street
Image credit X @NSEIndia
Sensex raises by 3200 points this month amid furious fund buying
By S Jha
New Delhi, June 27: Sensex has risen by over 3200 per cent in one month. Indian equity market saw participatory notes-based buying worth ₹1.49 lakh crore this month.
India will enter the coveted JP Morgan’s GBI-EPM from this Friday. The global bond index of the US-based financial behemoth will pump $11 billion in the Indian capital market.
In the course of the next 10-month, JP Morgan will reallocate funds from other emerging markets for India. The likes of South Africa, Thailand, Czeck Republic, Poland, and Chile will lose out to India.
Domestic Institutional Investors (DIIs) are pumping money in the cash market of the Indian equities. The DIIs reported a net buy of ₹25,580.77 crores this month.
The DIIs have made the Foreign Institutional Investors (FIIs) irrelevant. The FIIs reported a net sell of about ₹5000 crores so far this month.
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The pace of rally in the equity market is blowing away even die-hard fans of the equity market. The shipyard companies are richer by over ₹one lakh crore within a month of Prime Minister Narendra Modi taking charge at the Centre.
The trinity of Garden Reach Shipyard, Mazagon Dockyard Shipyard, and Cochin Shipyard are defying the gravity pull of the equity market to soar to new high each trading session.
The tribe of the equity market faithful is rising in strength. The mutual fund flow in the equity market is now averaging ₹20,000 crore each month. This alone dwarfs the FIIs.
Those who had bought into the equity market crash a day after the Lok Sabha verdict are counting the cash rains. Some of the equities had risen by 50 per cent within three days of the crash.
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As many as 29 IPOs have listed on the NSE and BSE this year. India has already outpaced China in listing in the stock market. Only six of them have given negative returns.
The successful IPOs have given returns in the range of 1000 per cent to seven per cent. If the Dalal Street is raining with money, it’s torrential rains of wealth in the SME IPOs.
A total of 28 SME IPOs listed this year so far. Only eight of them have give negative returns. AMIC Forging, an SME IPO, has given a return of 988 per cent in just six months.
The equity market is saying, catch me if you can. The furious bull run on the street is now even doubling shares of bluechip companies within one year. They too are shedding tags of ‘PF return’ shares.
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