After pulling out Rs 9,436 crore from the Indian stock market in May, overseas buyers are back in action with a net investment of Rs 1,576 crore so far in the current month.
An analysis of data available with market regulator SEBI shows that foreign institutional investors are gross buyers of stocks worth Rs 19,173 crore so far in June, whereas they sold shares worth Rs 17,596 crore, thus becoming net purchasers of Rs 1,576 crore.
With a net inflow of Rs 1,576 crore till June 11, the total net investment by overseas investors in 2010 stands at Rs 22,145.5 crore ($ 4.94 billion).
FIIs play a significant role in Indian equity markets and their movement (inflow as well as outflow) causes fluctuation in the benchmark indices.
Last month, Euro zone turbulence led foreign investors to snap their three-month long investment streak in the Indian equity market to emerge as net sellers of shares worth over Rs 9,400 crore ($ 2 billion) in May.
This was the first time after January that FIIs turned net sellers of shares in a month in 2010. During the February-April period, foreign funds invested a whopping Rs 30,500 crore in Indian stock markets.
FIIs had pumped in a record Rs 83,400 crore in 2009, but started selling shares in early 2010. In January, they were net sellers of shares worth Rs 500 crore. However, from February, the scenario started changing and they made net purchases of shares worth Rs 1,216 crore.
In April, FIIs were net purchasers of shares worth Rs 9,361 crore, after pumping in a whopping Rs 19,928 crore in March.