FII investments up 44 p.c. in capital markets

NEW DELHI, JUNE 4. Foreign institutional investors (FIIs) have made a 44 per cent increase in net investments in the domestic capital markets at Rs. 10,557.40 crores in the first five months of the calendar year 2001 as compared to Rs. 7,318.80 crores in the same period in the previous year.

While net equity investments by FIIs have gone up by almost 48.5 per cent to Rs. 10,653 crores from Rs. 7,174.70 crores, there has been a net outflow of Rs. 95.60 crores in the debt market during January-May 2001 as compared to a net inflow of Rs. 144.10 crores in first five months of 2000, as per data released by the Securities and Exchange Board of India.

Significantly, the net investments made by FIIs in the equity market this calendar year are in contrast to that of domestic mutual funds which have made net liquidation of Rs. 3,266.06 crores in the equity market.The contrarian attitude of the mutual funds is also evident in the case of investments in the debt market.

While FIIs have made net sales of Rs. 95.60 crores in the debt market, mutual funds have invested heavily in the debt market with net investments of Rs. 3,811.69 crores during the period under reference.

In fact, every month in the current calendar year, the FIIs have made net investments in equities, while mutual funds have religiously made net sales in equities and in turn purchased debt, according to the SEBI data.

- PTI

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