Boom Quarter.

(From Business Today (India))

Byline: BT-Mutualfundsindia.com

The celebratory mood was unmistakable. And it wasn't just fund managers, but also mf investors who saw their wealth multiply. As the third quarter of fiscal 2003-04 began, having done a marathon rally already, the Sensex was expected to take a breather-or so some thought. Many decided to book profits. But those who stayed invested found the bull charge gaining momentum. India's equity markets finished the quarter zooming past all expectations to touch record levels. The BSE's 30-scrip benchmark index, the Sensex appreciated by a whopping 31 per cent, while the NSE's 50-scrip barometer, the Nifty, went up 33 per cent over the quarter.

The Big Surprise

Investors and analysts had expected FII inflows to dry up in December, which has been the pattern in previous years. But this quarter was a different story altogether, with FIIs reinforcing their commitment to Indian equities. Net inflows crossed Rs 6,000 crore in December, and MFs, which had been net sellers for the past few months, pumped in almost Rs 750 crore (net of outflows) during the month. The rally was broadbased, as revealed by the BSE's sectoral indices. Over the quarter, the BSE it index was up 37 per cent, BSE Healthcare up 30 per cent, FMCG up 19 per cent and the Bankex up 31 per cent. The crown jewel remains it, evidently.

Equity Funds

India's equity funds appreciated by an average of 36 per cent. The worst performance of any equity fund was a positive 12 per cent, while the top performer delivered a stupendous 55 per cent return. Franklin ...