The liquidity-driven rally also lifted shares of smallcap and midcap companies that are poised for their biggest quarterly gain in six years.
Benchmark indices, S&P BSE Sensex and Nifty 50 index, that have moved up around 19 per cent and 20 per cent, respectively thus far in the June quarter are poised to record their sharpest quarterly gain in past one decade. Earlier, in June 2009 quarter, both these indices had rallied 49 per cent and 42 per cent, respectively.
The liquidity-driven rally also lifted shares of smallcap and midcap companies that are poised for their biggest quarterly gain in six years. Thus far in April- June quarter, the S&P BSE Smallcap index has rallied 29.8 per cent and S&P BSE Midcap index soared 23.7— the most since June 2014 quarter when it had gained 35.6 per cent and 32.4 per cent, respectively after the Narendra Modi-led government assumed power at the centre.
The rally in the June 2020 quarter in the small and mid-cap indices, however, comes on the back of 29 per cent to 30 per cent fall in the January – March 2020 quarter due to Coronavirus outbreak, data show.
Meanwhile, foreign portfolio investors (FPIs) have pumped in a net amount of $3.9 billion (Rs 29,621 crore) in Indian equities during the June quarter, NSDL data show. Mutual funds, on the other hand, were net sellers to the tune of Rs 4,801 crore.
Source: Business Standard