Indian Stock Market Welcomes Hedge Funds
Big hedge fund names such as Brevan Howard, Hudson Bay Capital Management, Balyasny Asset Management, Treeline Investment Management, Segantil Capital Management, Indus Capital and Myraid Capital Management have arrived the Indian stock market.
These
funds have participated in the qualified institutional placement of
Ashok Leyland and others. Sources said the new foreign portfolio
investment guidelines of the Securities and Exchange Board of India are
encouraging many of these new entrants because of the lower cost
involved by listing with the custodians directly. In June, foreign
investors have put in $1.8 billion in Indian equities in the primary and
secondary markets.
After
being battered for some time, punters have taken a liking for pharma
and IT stocks again. On Friday, the BSE Healthcare Index hit 11, 259 - a
new high. In May, it had slipped from 10,857 to 9,944. Similarly, the
IT index also had slipped to 8,214 and has recovered sharply to 9,270.
With the rupee slipping around 2.8 per cent in June - from 58.50 to
60.10 - market players are beginning to see value in these sectors
again. They say if the rupee stablises around 60, these sectors will
continue to do well.
Source: Business Standard
