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India Equity Research Reports, IPO and Stock News
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MARKET STRATEGY
Domestic markets started on a positive note led by budget announcements
on addressing concerns related to fiscal deficit, inflation and growth.
Markets were later impacted by sticky inflation, hike in interest rates,
moderation in IIP growth coupled with negative global cues coming in from
Libya, Middle-East and Japan. High food inflation coupled with soaring oil
prices continued to pose a concern and may also prompt RBI to further
increase the interest rates. However, robust growth in advance tax
payments, government's intent of implementing key reforms in banking and
pension and strong FII buying in last week of March 2011 were key positives
for the markets.
US, European and other Asian markets were also impacted in March 2011 by
concerns emanating from Middle-East and Japan. Federal Reserve left the
key rates unchanged and also indicated that economic recovery in US is firm.
Japanese indices were impacted adversely by the impact of earthquake,
tsunami and nuclear crisis coupled with yen appreciation. Continued
tensions in Middle-east triggered concerns on oil supply disruptions leading
to sharp spike in crude oil prices. European markets also remained weak due
to downgrade in sovereign debt ratings of Spain and rejection of austerity
measures by Portugal.
Going forward, markets are likely to be governed by inflation, interest rate
movements, crude oil prices, full year results for FY11 as well as outlook of
sectors going ahead. Global factors emerging from Middle-East, Asian, US
and European markets would also play a significant role in deciding market
direction going forward. Thus, we continue to believe that in near term,
markets may remain sideways till the time above stated concerns are
addressed while for a longer term, we believe markets are attractively
valued and provide decent upside from the current levels. Investors entering
at current levels must be prepared for a longer time horizon for making
gains. We have been bullish on several stocks across sectors such as
Banking, Capital goods, Construction, IT, Media, Metals etc. Thus, at current
levels, we recommend buying / accumulating fundamentally sound stocks
available at reasonable valuations with a longer term horizon.
Global markets impacted by concerns from Middle-East and Japan
US markets remained volatile throughout the last month due to concerns emanating
from Middle-East, North Africa as well as Japan and impact of continued turmoil in
Libya and Middle-East countries on the crude oil prices. On economic front, data
regarding jobs market indicated gradual improvement while home price index for
January also depicted a lower fall as compared to the previous month. Federal
Reserve left the key rates unchanged and also indicated that economic recovery is
firm. Fed will maintain the pace of its $600 billion Treasury bond-purchase program
to help the economy grow more strongly and to lower unemployment. However,
markets remained under pressure due to rising crude oil prices on fears that crude oil
supplies may be disrupted with continuing air-strikes in Libya.
Asian markets traded weak during the month due to devastating earthquake and
tsunami witnessed in Japan. Unfolding of nuclear crisis also sparked a huge sell off
across Asian and European indices. The problem in Japan was also worsened by the
use of just-in-time inventory systems particularly impacting autos and electronics
companies. Crisis in Japan resulted in appreciating Yen to new all-time high (76.25)
against the dollar on speculation that Tokyo would be repatriating yen to pay for the
damage. A strong yen could make it more difficult for the heavily export-dependent
Japanese economy to recover from the impact of earthquake, tsunami and nuclear
crisis. However, G7 nations intervened in forex markets to weaken the currency by
selling yen.
Mass protests which started from Tunisia, then spread to Egypt, have also continued
in Libya and is also spreading over to Yemen, Bahrain and other regions in the
Middle-East. Libya forms nearly 2-3% of world oil production and oil prices jumped
to $120 per barrel on fears of supply disruption post the air-strikes in Libya. Tensions
in Bahrain, which lies less than 100 kms from the hub of the Saudi oil industry may
further pose a threat to the oil prices going ahead.
Chinese markets remained strong in the beginning of the month on strong industrial
output but shaved off the gains post concerns coming from Japan. China also raised
the bank reserve requirements by another 0.5 percentage to tame inflation without
unduly impacting the growth which remained fairly strong at 14.1% for the first two
months of 2011. European markets remained weak after austerity measures for
Portugal are rejected which may result in forcing the debt-laden country to follow
Greece and Ireland and seek international bailout.
Indian markets posted smart gains during March 2011
Domestic markets cheered the budget for addressing concerns related to fiscal
deficit, inflation as well as growth and started on a positive note. Markets remained
range bound for a while on the intent of government for introducing various reforms
related to banking, insurance and pension, implementation of GST and DTC but
tensions from Middle-East leading to rising crude oil prices, nuclear crisis in Japan,
policy rate hikes by RBI and upward revision in inflation forecast kept markets fairly
volatile thereafter. However, robust growth in advance tax payments, government's
intent of implementing key reforms in banking and pension and strong FII buying in
last week of March 2011 led to smart gains for the markets.
Continued civil unrest and air strikes in Libya raised fears of oil supply disruption from
Libya leading to Brent crude jumping to as high as $120 per barrel. Average prices
of crude oil basket for India shot up to approx $110 per barrel as on 29th March as
compared to approx $97.3 per barrel as on 1st February, 2011.
However, positives came from advance tax payment data. Advance tax payments
made by nearly 100 firms showed a healthy growth of 25% for Q4FY11, belying
fears of a tight quarter with shrinking margins for Indian companies. Financial
companies, especially foreign banks, led the growth in tax paid for the fourth
quarter. Manufacturing firms presented a mixed bag, with some auto and cement
makers leading the gains.
Government also tabled the Banking Laws (Amendment) bill in the parliament. The
bill has been tabled in Lower House (Lok Sabha) seeking to amend the Banking
Regulation Act, 1949, the Banking Companies (Acquisition and Transfer of
Undertaking) Act, 1970, and the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 and to make consequential amendments in certain other
enactments. The proposal is to raise the voting rights of shareholders of PSU banks
to 10% from the existing 1% and to remove the voting right restriction of 10% for
private sector banks. This amendment also proposes to exempt mergers and
acquisitions in the banking sector from the scrutiny of the Competition Commission
of India which would be positive for mid-size private sector banks which are
considered as a potential targets for M&A. It also proposes to confer power on the
RBI to call for information and returns from associate enterprises of banking
companies and also to inspect the same. We believe that these measures if
implemented would be positive for both private as well as public sector banks.
Going forward, we believe that valuations are attractive on FY12 estimates but
markets are likely to be governed by inflation, interest rate movements, crude oil
prices, full year results for FY11 as well as outlook going ahead. Also, thrust on
infrastructure spending, commodity prices as well as on global factors emerging from
Middle-East, Asian, US and European markets would play a key role in deciding
market direction going ahead. Higher interest rates may impact interest rate
sensitive sectors such as infrastructure, real estate and utilities while higher
commodity prices may impact sectors like automobile and FMCG. We would also
continuously look out for the future guidance from companies in the key sectors.
Moderation in IIP on a larger base
January IIP came at 3.7% on a larger base led by 11.3% growth in the consumer
goods, 23.8% growth in the consumer durables but impacted by 18.6% fall in the
capital goods segment. On a MoM basis, seasonally adjusted growth in January was
0.9% against that of (-1.7%) in December and (-7.8%) in November. The
cumulative growth for the period April- January, 2010-11 stands at 8.3% over the
corresponding period of the previous year.
Seasonally adjusted IIP growth indicates sharp volatility due to volatile capital goods
number and going forward for next few months IIP numbers would continue to edge
lower. Weak performance of capital goods in the IIP also suggests that investment
momentum may be slowing down. We continue to expect the IIP growth for the
fiscal to be about 8%, reflecting over 8.5% GDP growth for the fiscal.
However, sluggish growth in fixed capital formation continues to remain a worrying
sign. In a scenario of strong consumption, inflation has remained high which
prompted RBI to increase interest rates. Further increase in interest rates from here
on may slow down the consumption coupled with slowdown in the capacity
creation. This would have an impounding impact on driving up inflation further,
thereby making the task of RBI difficult.
Inflation continued to remain sticky
WPI inflation for the month of Feb, 2011 stood at 8.31% as compared to 8.23%
seen in Jan, 2011 due to higher fuel and manufactured product prices. Inflation was
expected to trend downwards as per consensus estimates but full impact of rise in
fuel and power index was reflected in this. On a month on month basis, primary
article inflation came down by 2.9% and stood at 14.79% due to fall seen in the
food articles and manufacturing products inflation stood at 4.94% (up by 1.3%).
Rising crude prices and impact of hike in petrol prices translated into higher fuel
inflation which inched up to 11.49 % from 11.41% in Jan 2011.
Food article inflation for the week ended 12th March, 2011 crept back to double
digit at 10.05% vs 9.42% in the prior week after witnessing a downward trend for
three weeks. This was mainly led by spike seen in prices of vegetables, fruits and
protein-based items. The rate of price rise in food items, which accounts for over
14% of overall inflation, may prompt the Reserve Bank to further hike key policy
rates
Monthly inflation numbers continued to surprise on the upsides which prompted RBI
to increase its inflation forecast for March, 2011 to about 8% from earlier 7%. We
believe that going forward, food, non-food manufactured product as well as higher
crude prices continue to pose a concern. This would have a cascading affect on
overall inflation, thereby prompting RBI to further hike the interest rates.
Monetary policy review - tightening continues
RBI maintains its rate tightening path in mid-quarter policy review and increased the
repo and reverse repo rates by 25 basis points (bps) each. Accordingly, the repo rate
stands at 6.75% and the reverse repo rate at 5.75%; CRR and SLR are kept
unchanged at 6% and 24% respectively. RBI also retained its projection for real GDP
growth for FY11 at 8.6%.
RBI continued its discomfort for the rising inflation and current stance in the
monetary policy was intended to rein in demand side inflationary pressures while
minimizing risks to growth and also to contain the spillover of food and commodity
prices into a more generalized inflation. Non-food manufacturing products inflation,
an indicator of demand side pressure, continued to stay well above the medium
term trend. Along with this, since domestic fuel prices are yet to adjust fully to the
global prices, risks to inflation clearly remain on the upside. We thus expect RBI to
continue with its rate tightening stance over the course of next fiscal as well.
Foreign funds turned net buyers after being net sellers since
December 2010
Recommendation
Markets remained volatile and sideways due to fears of rising crude prices, inflation
and interest rates. Weakness in the global markets seen due to un-rest in Libya and
Middle-East, catastrophe in Japan and fears of crude oil supply disruptions kept the
markets range bound initially, inline with our expectations. However, buying was
witnessed during last week of March due to attractive valuations, which led to gains
of nearly 5% for the market. In our previous note, we had mentioned that in the
near term, markets may remain sideways till the time concerns related to inflation,
interest rates and thrust on spending coupled with global cues are addressed.
US, European and other Asian markets were also impacted by concerns emanating
from Middle-East and Japan. Any further negative news related to spiraling up of oil
prices, poor economic data from US or Europe, worsening of nuclear crisis in Japan
or yen appreciation may impact domestic markets also adversely.
Going forward, markets are likely to be governed by inflation, interest rate
movements, crude oil prices, full year results for FY11 as well as outlook going
ahead. Thrust on infrastructure spending, commodity prices as well as on global
factors emerging from Middle-East, Asian, US and European markets would also
play a significant role in deciding market direction going forward.
Thus we continue to believe that in near term, markets may remain sideways till the
time above stated concerns are addressed while for a longer term, we believe
markets provide decent upside from the current levels. Investors entering at current
levels must be prepared for a longer time horizon for making gains. We have been
bullish on several stocks across sectors such as Banking, Capital goods, Construction,
IT, Media, Metals etc Thus, at current levels, we recommend buying / accumulating
fundamentally sound stocks available at reasonable valuations with a longer term
horizon.
Preferred picks
Sector Stocks
Automobiles Bajaj Auto
Banking Axis Bank, ICICI Bank, HDFC Bank, BoB, SBI
Construction IRB Infra, IVRCL Infra, Pratibha Industries
Engineering Thermax, L&T, Voltas, Diamond Power, Havells India,
Kalpataru Power, Tractors India Ltd
Information Technology Infosys, KPIT, TCS, NIIT Tech
Media HT Media, Sun TV
Metals & Mining Sesa Goa
NBFC IDFC, LIC Housing Finance
Oil & Gas Cairn India, IGL
Source: Kotak Securities - Private Client Research
Foreign funds remained net buyers in the month of March, 2011 with net inflows in
the cash market stood at Rs.44.2 bn and mutual funds have also remained turned
net buyers and net inflows stood at Rs.9.8 bn. Though, foreign fund flows in March
have been impacted by rate hike fears, Middle East tensions, earthquake and
tsunami in Japan and corresponding fears of repatriation of Japan based funds. But
FIIs turned net buyers during March 2011 after remaining net sellers since December
2010 based on attractive valuations.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
MARKET STRATEGY
Domestic markets started on a positive note led by budget announcements
on addressing concerns related to fiscal deficit, inflation and growth.
Markets were later impacted by sticky inflation, hike in interest rates,
moderation in IIP growth coupled with negative global cues coming in from
Libya, Middle-East and Japan. High food inflation coupled with soaring oil
prices continued to pose a concern and may also prompt RBI to further
increase the interest rates. However, robust growth in advance tax
payments, government's intent of implementing key reforms in banking and
pension and strong FII buying in last week of March 2011 were key positives
for the markets.
US, European and other Asian markets were also impacted in March 2011 by
concerns emanating from Middle-East and Japan. Federal Reserve left the
key rates unchanged and also indicated that economic recovery in US is firm.
Japanese indices were impacted adversely by the impact of earthquake,
tsunami and nuclear crisis coupled with yen appreciation. Continued
tensions in Middle-east triggered concerns on oil supply disruptions leading
to sharp spike in crude oil prices. European markets also remained weak due
to downgrade in sovereign debt ratings of Spain and rejection of austerity
measures by Portugal.
Going forward, markets are likely to be governed by inflation, interest rate
movements, crude oil prices, full year results for FY11 as well as outlook of
sectors going ahead. Global factors emerging from Middle-East, Asian, US
and European markets would also play a significant role in deciding market
direction going forward. Thus, we continue to believe that in near term,
markets may remain sideways till the time above stated concerns are
addressed while for a longer term, we believe markets are attractively
valued and provide decent upside from the current levels. Investors entering
at current levels must be prepared for a longer time horizon for making
gains. We have been bullish on several stocks across sectors such as
Banking, Capital goods, Construction, IT, Media, Metals etc. Thus, at current
levels, we recommend buying / accumulating fundamentally sound stocks
available at reasonable valuations with a longer term horizon.
Global markets impacted by concerns from Middle-East and Japan
US markets remained volatile throughout the last month due to concerns emanating
from Middle-East, North Africa as well as Japan and impact of continued turmoil in
Libya and Middle-East countries on the crude oil prices. On economic front, data
regarding jobs market indicated gradual improvement while home price index for
January also depicted a lower fall as compared to the previous month. Federal
Reserve left the key rates unchanged and also indicated that economic recovery is
firm. Fed will maintain the pace of its $600 billion Treasury bond-purchase program
to help the economy grow more strongly and to lower unemployment. However,
markets remained under pressure due to rising crude oil prices on fears that crude oil
supplies may be disrupted with continuing air-strikes in Libya.
Asian markets traded weak during the month due to devastating earthquake and
tsunami witnessed in Japan. Unfolding of nuclear crisis also sparked a huge sell off
across Asian and European indices. The problem in Japan was also worsened by the
use of just-in-time inventory systems particularly impacting autos and electronics
companies. Crisis in Japan resulted in appreciating Yen to new all-time high (76.25)
against the dollar on speculation that Tokyo would be repatriating yen to pay for the
damage. A strong yen could make it more difficult for the heavily export-dependent
Japanese economy to recover from the impact of earthquake, tsunami and nuclear
crisis. However, G7 nations intervened in forex markets to weaken the currency by
selling yen.
Mass protests which started from Tunisia, then spread to Egypt, have also continued
in Libya and is also spreading over to Yemen, Bahrain and other regions in the
Middle-East. Libya forms nearly 2-3% of world oil production and oil prices jumped
to $120 per barrel on fears of supply disruption post the air-strikes in Libya. Tensions
in Bahrain, which lies less than 100 kms from the hub of the Saudi oil industry may
further pose a threat to the oil prices going ahead.
Chinese markets remained strong in the beginning of the month on strong industrial
output but shaved off the gains post concerns coming from Japan. China also raised
the bank reserve requirements by another 0.5 percentage to tame inflation without
unduly impacting the growth which remained fairly strong at 14.1% for the first two
months of 2011. European markets remained weak after austerity measures for
Portugal are rejected which may result in forcing the debt-laden country to follow
Greece and Ireland and seek international bailout.
Indian markets posted smart gains during March 2011
Domestic markets cheered the budget for addressing concerns related to fiscal
deficit, inflation as well as growth and started on a positive note. Markets remained
range bound for a while on the intent of government for introducing various reforms
related to banking, insurance and pension, implementation of GST and DTC but
tensions from Middle-East leading to rising crude oil prices, nuclear crisis in Japan,
policy rate hikes by RBI and upward revision in inflation forecast kept markets fairly
volatile thereafter. However, robust growth in advance tax payments, government's
intent of implementing key reforms in banking and pension and strong FII buying in
last week of March 2011 led to smart gains for the markets.
Continued civil unrest and air strikes in Libya raised fears of oil supply disruption from
Libya leading to Brent crude jumping to as high as $120 per barrel. Average prices
of crude oil basket for India shot up to approx $110 per barrel as on 29th March as
compared to approx $97.3 per barrel as on 1st February, 2011.
However, positives came from advance tax payment data. Advance tax payments
made by nearly 100 firms showed a healthy growth of 25% for Q4FY11, belying
fears of a tight quarter with shrinking margins for Indian companies. Financial
companies, especially foreign banks, led the growth in tax paid for the fourth
quarter. Manufacturing firms presented a mixed bag, with some auto and cement
makers leading the gains.
Government also tabled the Banking Laws (Amendment) bill in the parliament. The
bill has been tabled in Lower House (Lok Sabha) seeking to amend the Banking
Regulation Act, 1949, the Banking Companies (Acquisition and Transfer of
Undertaking) Act, 1970, and the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 and to make consequential amendments in certain other
enactments. The proposal is to raise the voting rights of shareholders of PSU banks
to 10% from the existing 1% and to remove the voting right restriction of 10% for
private sector banks. This amendment also proposes to exempt mergers and
acquisitions in the banking sector from the scrutiny of the Competition Commission
of India which would be positive for mid-size private sector banks which are
considered as a potential targets for M&A. It also proposes to confer power on the
RBI to call for information and returns from associate enterprises of banking
companies and also to inspect the same. We believe that these measures if
implemented would be positive for both private as well as public sector banks.
Going forward, we believe that valuations are attractive on FY12 estimates but
markets are likely to be governed by inflation, interest rate movements, crude oil
prices, full year results for FY11 as well as outlook going ahead. Also, thrust on
infrastructure spending, commodity prices as well as on global factors emerging from
Middle-East, Asian, US and European markets would play a key role in deciding
market direction going ahead. Higher interest rates may impact interest rate
sensitive sectors such as infrastructure, real estate and utilities while higher
commodity prices may impact sectors like automobile and FMCG. We would also
continuously look out for the future guidance from companies in the key sectors.
Moderation in IIP on a larger base
January IIP came at 3.7% on a larger base led by 11.3% growth in the consumer
goods, 23.8% growth in the consumer durables but impacted by 18.6% fall in the
capital goods segment. On a MoM basis, seasonally adjusted growth in January was
0.9% against that of (-1.7%) in December and (-7.8%) in November. The
cumulative growth for the period April- January, 2010-11 stands at 8.3% over the
corresponding period of the previous year.
Seasonally adjusted IIP growth indicates sharp volatility due to volatile capital goods
number and going forward for next few months IIP numbers would continue to edge
lower. Weak performance of capital goods in the IIP also suggests that investment
momentum may be slowing down. We continue to expect the IIP growth for the
fiscal to be about 8%, reflecting over 8.5% GDP growth for the fiscal.
However, sluggish growth in fixed capital formation continues to remain a worrying
sign. In a scenario of strong consumption, inflation has remained high which
prompted RBI to increase interest rates. Further increase in interest rates from here
on may slow down the consumption coupled with slowdown in the capacity
creation. This would have an impounding impact on driving up inflation further,
thereby making the task of RBI difficult.
Inflation continued to remain sticky
WPI inflation for the month of Feb, 2011 stood at 8.31% as compared to 8.23%
seen in Jan, 2011 due to higher fuel and manufactured product prices. Inflation was
expected to trend downwards as per consensus estimates but full impact of rise in
fuel and power index was reflected in this. On a month on month basis, primary
article inflation came down by 2.9% and stood at 14.79% due to fall seen in the
food articles and manufacturing products inflation stood at 4.94% (up by 1.3%).
Rising crude prices and impact of hike in petrol prices translated into higher fuel
inflation which inched up to 11.49 % from 11.41% in Jan 2011.
Food article inflation for the week ended 12th March, 2011 crept back to double
digit at 10.05% vs 9.42% in the prior week after witnessing a downward trend for
three weeks. This was mainly led by spike seen in prices of vegetables, fruits and
protein-based items. The rate of price rise in food items, which accounts for over
14% of overall inflation, may prompt the Reserve Bank to further hike key policy
rates
Monthly inflation numbers continued to surprise on the upsides which prompted RBI
to increase its inflation forecast for March, 2011 to about 8% from earlier 7%. We
believe that going forward, food, non-food manufactured product as well as higher
crude prices continue to pose a concern. This would have a cascading affect on
overall inflation, thereby prompting RBI to further hike the interest rates.
Monetary policy review - tightening continues
RBI maintains its rate tightening path in mid-quarter policy review and increased the
repo and reverse repo rates by 25 basis points (bps) each. Accordingly, the repo rate
stands at 6.75% and the reverse repo rate at 5.75%; CRR and SLR are kept
unchanged at 6% and 24% respectively. RBI also retained its projection for real GDP
growth for FY11 at 8.6%.
RBI continued its discomfort for the rising inflation and current stance in the
monetary policy was intended to rein in demand side inflationary pressures while
minimizing risks to growth and also to contain the spillover of food and commodity
prices into a more generalized inflation. Non-food manufacturing products inflation,
an indicator of demand side pressure, continued to stay well above the medium
term trend. Along with this, since domestic fuel prices are yet to adjust fully to the
global prices, risks to inflation clearly remain on the upside. We thus expect RBI to
continue with its rate tightening stance over the course of next fiscal as well.
Foreign funds turned net buyers after being net sellers since
December 2010
Recommendation
Markets remained volatile and sideways due to fears of rising crude prices, inflation
and interest rates. Weakness in the global markets seen due to un-rest in Libya and
Middle-East, catastrophe in Japan and fears of crude oil supply disruptions kept the
markets range bound initially, inline with our expectations. However, buying was
witnessed during last week of March due to attractive valuations, which led to gains
of nearly 5% for the market. In our previous note, we had mentioned that in the
near term, markets may remain sideways till the time concerns related to inflation,
interest rates and thrust on spending coupled with global cues are addressed.
US, European and other Asian markets were also impacted by concerns emanating
from Middle-East and Japan. Any further negative news related to spiraling up of oil
prices, poor economic data from US or Europe, worsening of nuclear crisis in Japan
or yen appreciation may impact domestic markets also adversely.
Going forward, markets are likely to be governed by inflation, interest rate
movements, crude oil prices, full year results for FY11 as well as outlook going
ahead. Thrust on infrastructure spending, commodity prices as well as on global
factors emerging from Middle-East, Asian, US and European markets would also
play a significant role in deciding market direction going forward.
Thus we continue to believe that in near term, markets may remain sideways till the
time above stated concerns are addressed while for a longer term, we believe
markets provide decent upside from the current levels. Investors entering at current
levels must be prepared for a longer time horizon for making gains. We have been
bullish on several stocks across sectors such as Banking, Capital goods, Construction,
IT, Media, Metals etc Thus, at current levels, we recommend buying / accumulating
fundamentally sound stocks available at reasonable valuations with a longer term
horizon.
Preferred picks
Sector Stocks
Automobiles Bajaj Auto
Banking Axis Bank, ICICI Bank, HDFC Bank, BoB, SBI
Construction IRB Infra, IVRCL Infra, Pratibha Industries
Engineering Thermax, L&T, Voltas, Diamond Power, Havells India,
Kalpataru Power, Tractors India Ltd
Information Technology Infosys, KPIT, TCS, NIIT Tech
Media HT Media, Sun TV
Metals & Mining Sesa Goa
NBFC IDFC, LIC Housing Finance
Oil & Gas Cairn India, IGL
Source: Kotak Securities - Private Client Research
Foreign funds remained net buyers in the month of March, 2011 with net inflows in
the cash market stood at Rs.44.2 bn and mutual funds have also remained turned
net buyers and net inflows stood at Rs.9.8 bn. Though, foreign fund flows in March
have been impacted by rate hike fears, Middle East tensions, earthquake and
tsunami in Japan and corresponding fears of repatriation of Japan based funds. But
FIIs turned net buyers during March 2011 after remaining net sellers since December
2010 based on attractive valuations.
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