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Sensex up by 215 to 3-month high, Nifty regains 6K mark

The BSE benchmark Sensex on Tuesday rose over 215 points to close at three-month of 19,888.95 and Nifty regained 6,000-point mark on sustained buying by FIIs in banking, FMCG, realty and auto sector stocks. The Sensex rose by 215.31 points, or 1.09 per cent, to 19,888.95, a level last seen on 31 January. The index had gained 98 points in the previous session. The gauge had touched the day's high of 19,917.88.

Similarly, the National Stock Exchange index, Nifty regained 6,000 points level by rising 72.50 points, or 1.21 per cent, to close at 6,043.55. MCX-SX index SX40 rose 90.92 points, or 0.78 per cent, to close at 11,731.20 points.

Asian stocks climbed for a second day Tuesday dominated by Japanese shares, on optimism central banks will continue to revive growth. Benchmark indices in Hong Kong, Singapore, Japan and China ended higher.

European stocks advanced in early trade with UK markets returning to action after a holiday and several firms reacting to earnings news. Key benchmark indices in France, Germany and UK moved up in 0.27 per cent to 0.33 per cent range.

Mumbai brokers said the buying activity gathered momentum, tracking a strong rally in global markets on the back of lower borrowing costs after Reserve Bank of Australia cut its benchmark interest rate, lifting blue chips further higher. Besides, expectations of an encouraging IIP data for March to be released later this week, too generated buying activity, they said.

The stock of HUL remained centre of brisk activity by surging 1.09 per cent to Rs 579.55, Jubilant Food by 1.18 per cent to Rs 1,136.70, while a well-diversified ITC Ltd gained 2.73 per cent to Rs 335.20.

In 30 BSE index components, 25 stocks climbed, while five closed with losses. The FMCG sector gained the most by 2.00 per cent to 6,657.58 points and banking index was the second best performer by adding 1.80 per cent to 14,436.99 as stocks of State Bank of India, Yes Bank, ICICI Bank, HDFC Bank, Axis Bank and Bank of Baroda Indusind Bank recorded smart gains.

The interest-sensitive realty sector index rose 1.40 per cent to 1,933.35, while auto sector index gained 1.12 per cent to 11,105.38 followed by capital goods by 0.90 per cent to 10,045.08, healthcare index by 0.88 per cent to 8,875.41.


P-NOTE INVESTMENTS SLIP 11% Y-O-Y TO $27 BILLION IN MARCH

New Delhi: Foreign investments into Indian markets through participatory notes (P-Notes), a preferred route for HNIs and hedge funds, declined to Rs 1.48 lakh crore (about $27 billion) in March.

According to the latest data released by the Securities and Exchange Board of India (Sebi), the cumulative value of P-Note investments in Indian markets (equity, debt and derivatives) was at Rs 1,47,905 crore at the end of March, 2013.

The March’s figure was lower than the total investments of Rs 1.64 lakh crore in February and Rs 1.62 lakh crore in January.

At the end of March 2012, investment by rich overseas entities in the Indian market through P-Notes stood at Rs 1.66 lakh crore.

P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to invest in Indian markets through registered Foreign Institutional Investors (FIIs), while saving on time and costs associated with direct registrations.

Notably, investments into Indian shares through P-Notes was at Rs 1.77 lakh crore in November and Rs 1.75 lakh crore in October on government’s policy reform measures and initiatives to address tax-related issues.

Besides, the value of P-Notes issued with derivatives as underlying, was at Rs 1.04 lakh crore at March-end.

The quantum of FIIs investments through P-Notes decreased to 11.07 per cent in March from a six-month high of 12.33 per cent in the previous month.

Till a few year-ago, the P-Notes used to account for more than 50 per cent of total FII investments, but their share has fallen after Sebi tightened disclosure and other regulations for such investments. The PNs have been accounting for mostly 15-20 per cent of total FII holdings in India since 2009, while it used to be much higher, in the range of 25-40 per cent, in 2008.
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