fiis have put 4328 crors in april, 2009
Mumbai, April 26: Foreign investors, it seems, to have regained confidence in the Indian equity markets with the FIIs pumping in as much as Rs 4,328 crore in the capital markets so far in April, the highest monthly infusion this year.
Foreign Institutional Investors have made a gross purchase of equities worth Rs 32,499 crore in April so far, while they sold shares valuing Rs 28,170 crore, resulting in a net investment of Rs 4,328 crore, according to data available with the market regulator Securities and Exchange Board of India (SEBI).
Marketmen said the inflow of foreign funds into domestic equity market will continue in the near term as the global economic situation seems to be somewhat stabilising.
“FIIs would continue investing in the Indian market till they hear some bad news from their home market. As of now the economy there is somewhat stabilising and FIIs would continue their investments here in India,” SMC Global Vice-President Rajesh Jain said.
Significantly, for the first two months of 2009 have witnessed a total pullout of Rs 6,681 crore from the equity market by the overseas investors. Since March, there has been a revival in buying by FIIs in stock markets, as they invested in shares worth Rs 530 crore last month.
An analysis of FIIs’ investment trend shows investors preferred to place money in capital market, rather than the debt market.
With three trading sessions remaining in April, FIIs have invested only Rs 461 crore in the debt market, whereas in the first three months of this year FIIs have pulled out Rs 6,305 crore.
“The US dollar is strengthening against the Indian rupee. This is acting as a booster for the FIIs to invest in the Indian market as the valuations are coming cheap for them,” Jain added.
So far this year, the Bombay Stock Exchanges’ benchmark Sensex has gained over 17 per cent to reach the 11,329 points, the highest level in the past six-months.
However, till now the year 2009 has not turned in an investment period for the overseas institutions. As per the data available with SEBI, till now in 2009, FIIs are net sellers of Indian equities worth Rs 1,822 crore.
It is worth mentioning here in last fiscal, FIIs had pulled out close to Rs 50,000 crore at the domestic stock market, almost equaling the inflow of FY’07-08.
According to SEBI data, FIIs’ net outflows have been Rs 47,706.2 crore till March 30 in the financial year 2008-09 against huge inflows of Rs 53,000 crore in FY’08.
News Bureau Report
- Last Modified: April 26, 2009
- Filed Under: Latest News, MARKETS, NATION, WORLD
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