The market continued its bull run with Sensex hitting 11,000 level by minutes of commencement of trading as data showed strong inflow by FIIs and mutual funds on Friday 17 March 2006.
At 10:26 IST, Sensex was up 50 points at 10,991. Sensex hit a high of 11,001.50 in early trade.
The market sentiment was firm following a move towards greater capital account convertibility by the Indian government. Finance Minister P Chidambaram said on Monday RBI would announce steps on rupee convertibility in a few days time. A committee will produce a road map for the process by July 31.
Greater convertibility would give companies more access to foreign debt markets and cut delays in foreign exchange transactions. It would also enhance foreign investors' access to India's banks and debt market.
The speed of the ongoing rally has surprised market men. It took just 29 trading sessions for Sensex to reach 11,000 after the barometer index first hit 10,000 on 6 February 2006. The rally on the bourses was accentuated following the announcement of Union Budget 2006-07 on 28 February and after a landmark Indo-US nuclear deal was singed early this month. The absence of any negative surprise in the budget and its focus on infrastructure and rural segments to propel economic growth boosted the market. Meanwhile, it is reckoned that continued good Indo-US relations would boost bilateral trade.
Earlier, Sensex's journey from 7,000 to 8,000 had taken 55 trading session, the rise from 8,000 to 9,000 had taken 54 trading session and that from 9,000 to 10,000 had taken 48 trading sessions.
The ongoing rally has been driven by strong liquidity. There has been unprecedented inflow of funds by FIIs in Indian stocks. In a little over 2-½ months of 2006, FII inflow has reached $ 3.47 billion, amounting to 32% of $ 10.7 billion invested in the entire calendar year 2005. A lot of money is being raised around the world for investing in Indian stocks. FIIs are betting on India's growth story.
Mutual funds, flushed with funds from the hefty collection mopped up by new equity schemes in the past three months, have stepped up buying this month. For the month of March 2006, the buying of mutual funds has reached Rs 2,523 crore (till 17 March). On 16 March, Reliance Mutual Fund said its new equity scheme Reliance Equity had collected Rs 5700 crore in Scheme. This is the largest ever collection by a New Fund
At 10:26 IST, Sensex was up 50 points at 10,991. Sensex hit a high of 11,001.50 in early trade.
The market sentiment was firm following a move towards greater capital account convertibility by the Indian government. Finance Minister P Chidambaram said on Monday RBI would announce steps on rupee convertibility in a few days time. A committee will produce a road map for the process by July 31.
Greater convertibility would give companies more access to foreign debt markets and cut delays in foreign exchange transactions. It would also enhance foreign investors' access to India's banks and debt market.
The speed of the ongoing rally has surprised market men. It took just 29 trading sessions for Sensex to reach 11,000 after the barometer index first hit 10,000 on 6 February 2006. The rally on the bourses was accentuated following the announcement of Union Budget 2006-07 on 28 February and after a landmark Indo-US nuclear deal was singed early this month. The absence of any negative surprise in the budget and its focus on infrastructure and rural segments to propel economic growth boosted the market. Meanwhile, it is reckoned that continued good Indo-US relations would boost bilateral trade.
Earlier, Sensex's journey from 7,000 to 8,000 had taken 55 trading session, the rise from 8,000 to 9,000 had taken 54 trading session and that from 9,000 to 10,000 had taken 48 trading sessions.
The ongoing rally has been driven by strong liquidity. There has been unprecedented inflow of funds by FIIs in Indian stocks. In a little over 2-½ months of 2006, FII inflow has reached $ 3.47 billion, amounting to 32% of $ 10.7 billion invested in the entire calendar year 2005. A lot of money is being raised around the world for investing in Indian stocks. FIIs are betting on India's growth story.
Mutual funds, flushed with funds from the hefty collection mopped up by new equity schemes in the past three months, have stepped up buying this month. For the month of March 2006, the buying of mutual funds has reached Rs 2,523 crore (till 17 March). On 16 March, Reliance Mutual Fund said its new equity scheme Reliance Equity had collected Rs 5700 crore in Scheme. This is the largest ever collection by a New Fund
