Foreign Institutional Investors Buying Shares Again !!

Buying demand from foreign institutional investors (FIIs) aided the recent upsurge. FIIs bought shares worth a net Rs 1491.20 crore on Monday, 4 May 2009. Their inflow in calendar year 2009 totaled Rs 2203.90 crore. 

Recovery in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex jumped 3974.35 points or 48.70% to 12134.75 on 4 May 2009. 

Activity in Indian factories expanded for the first time in five months in April 2009 as a swelling orders pipeline pointed to a tentative recovery, a survey showed on Monday, 4 May 2009. The ABN AMRO Bank purchasing managers' index (PMI) based on a survey of 500 companies, rose to 53.3 in April 2009 from 49.5 in March 2009, climbing above the threshold of 50 that separates expansion from contraction. The latest reading is the highest in seven months and it has steadily risen after hitting a trough of 44.4 in December 2008.

Manufacturing makes up about 16% of India's gross domestic product. The boost in manufacturing index came from a surge in new orders. The new orders index rose to 54.9 in April 2009 from 49.5 in March 2009. Several research notes in the past few days have pointed to improvement in economic activity in the months ahead. 

European shares rose with financials the biggest gainers on hopes that the results of US government stress tests on banks would reveal only modest shortfalls for the sector. Key benchmark indices in UK, France and Germany were up by between 0.10% to 2.87%