Stocks

FIIs investment in equities touches $10 b so far this year

PTI New Delhi | Updated on March 12, 2018 Published on March 24, 2013

FIIs infused $1.4 billion in the domestic stock market in March so far taking the total inflows to $10 billion in less than three months of 2013.   -  PAUL NORONHA

Overseas investors have poured in $1.4 billion into Indian equities in March, taking the total investment tally to $10 billion for the 2013 calendar year so far.

Foreign Institutional Investors (FIIs) infused $1.4 billion (about Rs 7,547 crore) in the domestic stock market in March so far taking the total inflows to $10 billion (Rs 54,045 crore) in less than three months of 2013.

FIIs had pumped in $4.57 billion (Rs 24,440 crore) in February and $4.05 billion (Rs 22,000 crore) in January.

Reform measures

Market analysts attributed the huge inflows into Indian equities to a slew of measures taken by the Government, including the postponement of General Anti Avoidance Rule (GAAR) implementation by two years to April 1, 2016 and partial decontrol of diesel prices.

Monetary easing

Additionally, easing of interest rate by the Reserve Bank of India (RBI) and subsequent impact of improved liquidity position have further boosted the FII inflow.

During March 1-22, FIIs were gross buyers of shares worth Rs 57,303 crore, while they sold equities amounting to Rs 49,756 crore, translating into a net investment of Rs 7,547 crore ($1.4 billion), as per SEBI data.

FII inflows in debt market

Foreign fund houses also infused Rs 7,373 crore ($1.35 million) in the debt market so far this month. This takes the overall net investment by FIIs into debt market to Rs 14,322 crore ($2.65 billion) so far this calendar year.

“FIIs have been infusing money into the Indian market on account of various reform measures taken by the Government and change in RBI’s monetary policy that has added liquidity to the system. This liquidity will help in growth of the country,” Wellindia Executive Director Hemant Mamtani said.

Earlier this month, the RBI has slashed repo rates by 25 basis points to 7.5 per cent in its mid-quarter monetary policy review.

FIIs bought equities worth $24.4 billion in 2012, about $5 billion below record purchases two years ago.

As on March 22, the number of registered FIIs in the country stood at 1,757 and the total number of sub-accounts was 6,322.

Published on March 24, 2013
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