The Indian markets have rocketed over the past three months, fueled mainly by investments from foreign institutional investors and domestic institutions.
From the October 2008 low of 7,697 points, the Sensex inched up to 8,160 points on March 9,2009, from where it has rocketed to 15,000. The result of the elections, better economic figures and an easing in the liquidity conditions, have all contributed to push the markets higher and faster.
While Fiis have been net buyers and domestic institutions (mainly mutual funds and insurance firms) have also put in a lot of money, surprisingly, private equity players have been offload ing their stakes in quite a few companies. Private equity players sold a whopping Rs 1,500 crore as the rally got going in March, according to data collated by SMC Capital Investments. They have pulled out about Rs 1,160 crore in the couple of months after that. Some of the companies in which private equity players held stakes and have sold this recently are Shriram Transport Finance,Yes Bank, HT Media and Lupin.S Ramesh, chief operating officer, Kotak Investment Bank, says, “Overall, the markets have rebounded and private equity players have seen this as a window of opportunity to exit, as most of their investments were long term holdings:’
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