Foreign institutional investors (FIIs), buoyed by quantitative easing (QE3) by the US Federal Reserve and the diesel price increase, on Friday pumped in over half-a-billion dollars in the Indian stock market. The BSE Sensex rose 443 points – the highest rise in a day this calender year – to close at a 14-month high of 18,464.27. The rupee rose two per cent – the highest amid Asian currencies – to a four-month high of 54.31.The party isn’t over yet. For many, it’s just starting. The government’s bold steps, such as allowing foreign direct investment in aviation, retail and other sectors has sent sentiments soaring. “This is the beginning of a significant rally. The sharp rise in the rupee would act as a trigger for FIIs to pump in more money. We expect market to touch 21,000 before March,” said G Chokkalingam, executive director & CIO, Centrum Wealth Management.
Source: Business Standard
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