Market breaks 2-month jinx, rallies 10 per cent in March series

31 Mar 2011

Dalal Street was under the full force of the bulls for eight consecutive sessions till the expiry session. After a long time, Indian equity benchmarks rallied consistently for eight straight sessions.

The market recouped more than 75% of its losses suffered in the January & February series by showing stunning performance in the March series, with gaining more than 10%, supported by strong inflow of funds from foreign institutional investors (FIIs).

However, the first quarter of CY11 was quite bad for the market - benchmarks plummeted over 4%.

FIIs were net buyers to the tune of more than Rs 6,000 crore worth of equity shares in the month of March while they were net sellers of more than Rs 10,000 crore in previous two months i.e. January and February.

Nilesh Shah, president (corporate banking) of Axis Bank said there are contrarian investments coming into the market. "There was some bottom fishing done by the long-only funds," he said.  

It seems that market has factored in all negative news like Japan crisis and even crude also stabilised for the time being.