Betting big on Indian equities, foreign institutional investors (FIIs) have put over Rs. 71,900 crore so far this year in the country’s bourses, the highest ever investment made in rupee terms in a single year.
So far in 2009, overseas investors have invested a net of Rs. 71,979 crore (about $14.99 billion ) in the local stock markets, the data available with market regulator Securities and Exchange Board of India (SEBI) reveals.
Till now, the year 2007 attracted record investment from foreign fund houses. FIIs inflows in stock markets in 2007 stood at Rs. 71,486 crore.
“The trend is not surprising that Indian equity markets attracted record investment this time. A number of factors including weakening of the dollar and a higher rate of return from the emerging markets have attracted the investment from FIIs,” Unicon Financial CEO Gajendra Nagpal said.
According to market-men, inflows from foreign houses in the Indian stock markets will continue in the coming days.
“With the government’s talk on disinvestment of stake in state-run companies and the announcement of big infrastructure programmes, we see FIIs would stay long in the Indian market,” a leading market analyst said.
Interestingly, the stock market benchmak Sensex has risen over 76 per cent so far this year, emerging as one of the best performers among its peers.