News: Foreign funds stay glued to India
(NDTV 21/04/2006) Mumbai - A day after the Sensex danced to the 12,000 tune, foreign funds are still not turning their face away from the Indian markets.
There is no shortage of money, and a lack of choice in other emerging markets is keeping foreigners clued on to India despite the strong rise.
"We have had a very strong run in most of the markets from mid-March, so a bit of consolidation will not be a bad thing. We will remain invested till we get sell signals on our indicators, and we are certainly not getting them at the moment," said Julian Reid, CEO, 3a Funds.
The 12,000 surge was supported by a small amount of buying by the foreign institutions as well as domestic mutual funds on Thursday. But going ahead, several European and Australian funds are now getting ready to pump in fresh money into India.
The question now is how sharply can the markets react, and will it be large enough to end the bull run.
With the Sensex gaining more than 7 per cent this week, all eyes are on an important result week starting Monday, and the role of foreign money is likely to continue as an important driving factor.
There is no shortage of money, and a lack of choice in other emerging markets is keeping foreigners clued on to India despite the strong rise.
"We have had a very strong run in most of the markets from mid-March, so a bit of consolidation will not be a bad thing. We will remain invested till we get sell signals on our indicators, and we are certainly not getting them at the moment," said Julian Reid, CEO, 3a Funds.
The 12,000 surge was supported by a small amount of buying by the foreign institutions as well as domestic mutual funds on Thursday. But going ahead, several European and Australian funds are now getting ready to pump in fresh money into India.
The question now is how sharply can the markets react, and will it be large enough to end the bull run.
With the Sensex gaining more than 7 per cent this week, all eyes are on an important result week starting Monday, and the role of foreign money is likely to continue as an important driving factor.
posted by InCar Group Press Room at 20:41
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