The market has seen a significant momentum this month especially on the Year-on-Year basis. The market has rallied about four percent in the last month and FII inflows too have been pretty strong at around USD 17 bn.
According to Raja Lahiri of Grant Thorton India the reason behind the momentum pick up is the cross border merger and acquisition deals that have happened in November. The total deals’ value was worth USD 10 billion.
Also read: ONGC gets project operator's nod for Kashagan stake buy
Lahiri says, "Clearly this is a pretty good month for deal activity. We saw three large cross-border deals. One of the key deals was Diageo’s deal on buying out United Spirits Limited’s (USL) 53 percent stake of USD two billion. Then there is the Gulf Oil deal of Houghton International of around USD one billion and finally, in the oil and gas space, ONGC buying out an asset in Russia of around USD five billion."
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