The Hindu Business Line : FIIs turn bullish on Indian markets

NEW DELHI: Foreign institutional investors (FIIs) poured Rs 30,455 crore into the Indian stock market in the first quarter of the current fiscal, as analysts said they were reassured of India's growth prospects.

Overseas investors were the net buyers in the Indian stocks to the tune of Rs 30,455 crore, with over 66 per cent of the total investment coming in May alone, an analysis of FIIs activity in the domestic markets in the first quarter of FY'10 showed.

Analysts feel the flight of the foreign funds back to the domestic market put the domestic bourses on an upward trajectory since March-end.

“FIIs believe the India growth story is intact and would continue to invest in the Indian market on a longer horizon. Even if the US markets fall, the FII investment might take a pause, but it will gradually recover,” SMC Global Vice President, Mr Rajesh Jain said.

During the April-June quarter, FIIs were gross buyers of shares worth Rs 1,81,707 crore, while they sold equities valued at Rs 1,51,251 crore, resulting in a net inflow of Rs 30,455 crore, according to the data available with the market regulator Securit ies and Exchange Board of India (SEBI).

May has turned as a golden month for the market so far in 2009, as inflow of Rs 20,117 crore, accounting for 66 per cent of the total investment in the June quarter, were seen in the month alone. - PTI

Next: Rupee recovers

Business Line | NUS Index |

Copyright copy; 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line