The unabated rise on the bourses continues on the back of sustained inflow of FIIs. Rumours that a Japanese fund is sitting on a huge cash kitty of Rs 5,000 crore for investing into Indian stocks, triggered Monday's 140 points' rally in Sensex.
Strong inflow from FIIs and fund flush domestic mutual funds has ensured that the rally has materialised without correction. `A correction may materialise when liquidity dries up', says a dealer with a local brokerage.
Latest data showed that FIIs bought shares worth a net Rs 389.80 crore on Friday 3 March 2006. Sensex had lost 31.35 points or 0.3% on that to settle at 10,595.43. FIIs bought shares worth a net Rs 1,611.50 crore in the first three trading sessions of March 2006.
Local mutual funds are in a quandary as they are awaiting correction that has proved illusive. About Rs 10,000 crore was collected by mutual funds from launch of new equity schemes in the past two months or so. A large part of that money is yet to be invested on the bourses as fund mangers are waiting for a correction.
With no negative surprise in the budget, the Sensex has advanced sharply by 3.5% or 365 points from its close of 10,370.24 on the day of budget announcement on 28 February 2006. A section of the market had feared that the long-term capital gains tax might be reintroduced in the budget.
US stocks sank on Monday as a jump in 10-year Treasury note yields to a 21-month high rattled investors by signaling higher interest rates ahead. The Dow Jones industrial average fell 63.00 points, or 0.57 percent, to end at 10,958.59. The Standard & Poor's 500 Index slipped 8.97 points, or 0.70 percent, to finish at 1,278.26. The Nasdaq Composite Index dropped 16.57 points, or 0.72 percent, to 2,286.03.
Oil prices slid as OPEC members indicated the cartel would not cut production at its meeting this week. US crude for April delivery fell $1.26 to settle at $62.41 a barrel on the New York Mercantile Exchange.
Strong inflow from FIIs and fund flush domestic mutual funds has ensured that the rally has materialised without correction. `A correction may materialise when liquidity dries up', says a dealer with a local brokerage.
Latest data showed that FIIs bought shares worth a net Rs 389.80 crore on Friday 3 March 2006. Sensex had lost 31.35 points or 0.3% on that to settle at 10,595.43. FIIs bought shares worth a net Rs 1,611.50 crore in the first three trading sessions of March 2006.
Local mutual funds are in a quandary as they are awaiting correction that has proved illusive. About Rs 10,000 crore was collected by mutual funds from launch of new equity schemes in the past two months or so. A large part of that money is yet to be invested on the bourses as fund mangers are waiting for a correction.
With no negative surprise in the budget, the Sensex has advanced sharply by 3.5% or 365 points from its close of 10,370.24 on the day of budget announcement on 28 February 2006. A section of the market had feared that the long-term capital gains tax might be reintroduced in the budget.
US stocks sank on Monday as a jump in 10-year Treasury note yields to a 21-month high rattled investors by signaling higher interest rates ahead. The Dow Jones industrial average fell 63.00 points, or 0.57 percent, to end at 10,958.59. The Standard & Poor's 500 Index slipped 8.97 points, or 0.70 percent, to finish at 1,278.26. The Nasdaq Composite Index dropped 16.57 points, or 0.72 percent, to 2,286.03.
Oil prices slid as OPEC members indicated the cartel would not cut production at its meeting this week. US crude for April delivery fell $1.26 to settle at $62.41 a barrel on the New York Mercantile Exchange.
