Post exit poll euphoria, FIIs rush in with more funds

Sensex hits 24,000 mark, Nifty jumps to new peak

By: ENS Economic Bureau | New Delhi | Published:May 14, 2014 12:41 am

Domestic markets maintained momentum for the third straight session on Tuesday as majority of the exit polls projected the BJP-led NDA forming the next government.

The benchmark Sensex at the Bombay Stock Exchange rose by 320 points or 1.4 per cent on Tuesday, taking its three-day gain to 1,527 points or 6.8 per cent.

The Sensex breached a second milestone in three trading sessions as it hit an intra-day high of 24,068 points before closing the day at 23,871. The index had crossed the 23,000-mark on Friday. The broader Nifty rose by 94 points or 1.4 per cent to close at a new high of 7,108.8 points. After the exit polls results, foreign institutional investors pumped in more money on Tuesday. The net FII inflow on Friday and Monday was Rs 2,479 crore. On Tuesday, post the exit polls, FIIs pumped in 2,026 crore, taking the three day aggregate to Rs 4,505 crore.

“There is scope for another 10-15 per cent rise if NDA gets over 270 seats,” said a top official with a leading global financial services firm.

FM asks regulators to be alert

New Delhi: With markets on a bull run ahead of the counting of votes on May 16, finance minister P Chidambaram on Tuesday asked financial sector regulators to remain watchful and take necessary actions to curb excessive volatility.

“The finance minister called upon the regulators and the ministry of finance to be in a state of readiness and take necessary action if the situation so warrants,” said an official release after a meeting of the Financial Stability and Development Council.

Emerging from the meeting, Reserve Bank of India governor Raghuram Rajan said the central bank is prepared to deal with any kind of eventuality that may occur over next few days. Sebi chairman UK Sinha also said that all regulations are in place to control excessive volatility. ENS

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