Excel Funds Management Inc.

Emerging Markets

Sensex rises to 5-month high

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The BSE Sensex rose by 1.1% on Tuesday to reach its highest close in five months. The Sensex advanced by 194.18 points to close the day at 17,885.26, a level last seen on March 14th.  A multitude of positive developments contributed to the surge, including Infosys winning a lawsuit and falling inflation.  Global cues also helped sentiments as shares benefited from expectations for the European Central Bank to lower Spanish and Italian borrowing costs.  In addition, consumer good stocks gained on favourable rainfalls late in the monsoon season. 

Foreign institutional investors were net buyers of 8.98 billion rupees in domestic stocks last week which marks a third consecutive week of purchases, showcasing investor confidence in India.  The total foreign institutional investor inflow now stands at $10.41 billion. 

Investor sentiment was also aided by expectations of rate cut announcements from state-run banks following the Finance Minister’s call to reduce rates.  Furthermore retail inflation declined to 9.86% in July from 10.02% in June. 

Information technology stocks were among the top gainers.  The BSE IT index has moved up by nearly 2.5% now.  IT heavyweights, Infosys (3.5%), Tata Consultancy Services (2%) and Wipro (1.3%) rallied upwards.    The auto sector also rose by 1.19% on anticipation that rain will generate buying power for tractors and vehicles in rural areas.  Tata Motors was among the biggest gainers with a 2.37% increase.

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Author: Excel Funds Management

We Are Leaders. Our Focus is Undivided. Excel Funds is Canada’s specialist in Emerging Market investment opportunities. We pioneered Emerging Market mutual fund design and distribution in Canada. Our focus is undivided – Emerging Markets is all we do. Our Mission Is To Offer Canadians True Global Access By offering Canadians access to rapid growth markets, Excel Funds provides truly global and diverse investment value. Our clients want consistent, responsible and intelligent solutions – we will never stop being challenged and deliver on client expectations. We Listen. We Are Determined To Deliver. Our clients want to understand better. Excel Funds is the only company dedicated to providing investors with actively managed, best-in-class Portfolio Managers based in regional markets. In order to deliver deeper understanding, we are not removed from unique cultural, political and economic experiences. We Initiate. We Create. Investors benefit from strong, sustainable growth. To create wealth for our clients we will: • Offer globally diverse opportunities to capture shifts in world economies • Not resist change and continually lead in Emerging Markets global growth • Engage world class institutional managers for retail investors We Are Passionate. We Will Never Stop Innovating. True leadership is enabling and seeks a positive outcome for all invested. We will not rest on past success, and continue to provide clients with: • Innovative fund structures • Canada’s largest & most comprehensive Emerging Markets products • The best institutional level Portfolio Managers • World class on-the-ground active managers • A singular focus on Emerging Markets, the driver of global growth

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