Date:10/08/2005 URL: http://www.thehindubusinessline.com/2005/08/10/stories/2005081002631500.htm

Back Gems and jewellery sector favourite with FIIs: study

Our Bureau

New Delhi , Aug 9

THE gems and jewellery sector has emerged as a favourite for foreign institutional investors (FII) who have increased their exposure to the Indian stock market, followed by the media sector.

According to an Associated Chamber of Commerce and Industry of India (Assocham) Eco Pulse Study, the average FII exposure in the top 10 gems and jewellery firms increased by 13.41 per cent during the first six months of the current fiscal.

The average increase in the FII exposure amongst the top 10 media firms was at 6.68 per cent during the same period.

According to the study, the average increase of the FII participation in the textile sector was 5.05 per cent, while the average FII exposure in the top 10 hotel and hospitality firms went up by 5.01 per cent in the first six months of the current fiscal.

As far as IT companies are concerned, the average increase was 4.69 per cent.

The study further finds that FII inflows stood at $6.36 billion in the first seven months of the year, while it was only $3.72 billion during the corresponding period in the previous year.

Strong economic growth, industrial pick-up; focus on core sectors such as infrastructure, power and telecom; and the good performance by corporates houses have resulted in FIIs continuing to remain bullish about the Indian market, the study says.