Combined food inflation stood at 7.62% for September 2014, lower than 9.15% recorded for August 2014. For rural and urban areas, food inflation was 7.59% and 7.60%, respectively, in September. Inflation in vegetable prices was significantly lower, at 8.59% in September, compared to 15.03% in August. Inflation in fruit prices was 22.40% in September, while pulses were dearer by 7.18% year-on-year. Inflation for cereals stood at 6.42% and inflation for milk products was 11.08%. The price rise of non-vegetarian items, such as eggs, meat and fish, was 6.35% in September compared to 7.71% in August 2014.
Financials continue to remain the highest overweight sector for FIIs, while software and energy are the biggest underweight sector, says BofA-ML
Maintaining a bullish stance on Indian equities, foreign investors have increased their exposure in Sensex companies to an all-time high of 27% during the September 2014 quarter.
According to a report from Bank of America Merrill Lynch, strong inflows from foreign institutional investors (FIIs) over the past five years have resulted in all-time high foreign ownership for the Indian markets.
“FII stake in Sensex companies has been rising continuously since 2009,” the global financial services major said in a research note, adding the FII stake stood at an all-time peak of 27% as of 30th September.
FIIs continued to invest in India in the September quarter albeit at a slower pace. Moreover, this was the eighth consecutive quarter of positive inflows from FIIs.
As of June 2014, FIIs collectively held around 22.5% of the market and around 46% of the free float. In comparison, FIIs held around 15% of the total market cap and 36% of free float in March 2009.
A sector-wise analysis shows that financials continue to remain the highest overweight sector for FIIs, while software and energy are the biggest underweight sectors.
“We are positive on energy sector reforms and believe positive progress on it could lead to FII buying in PSU oil companies,” the report added.
Most bought sectors by FIIs were consumer, telecom, software and financials. On the other hand, most sold sectors by FIIs were industrials, cement and metals.