Adopting a bullish stance on India, overseas investors have pumped in about Rs.14,000 crore in the Indian equity market so far this month and analysts expect this positive trend to continue further.
Since the beginning of 2012, the FIIs have infused a total of Rs.24,225 crore ($4 billion) into Indian stocks, after taking into account Rs.10,358 crore of net inflow during January, 2012.
During February 1-17, FIIs were gross buyers of shares worth Rs.47,895 crore, while they sold equities amounting to Rs.34,028 crore, translating into a net investment of Rs.13,867 crore ($2.81 billion), according to data available with market regulator SEBI.
Market analysts attributed strong FIIs inflows into the domestic market to the reversal in RBI's monetary policy and the subsequent impact of improved liquidity position. The foreign fund houses have also infused Rs.799 crore in the debt market so far this month.
This takes the overall net investments by FIIs into Indian markets to Rs.14,666 crore ($2.97 billion) for this period.
Stock market inflows in the first 17 days of February, at Rs.13,867 crore, were higher than that for the entire month of January, 2012, which stood at Rs.10,358 crore. “FIIs have been infusing money into the Indian market due to change in RBI's monetary policy that have added liquidity to the system. This liquidity will help in growth of the country,” Wellindia Executive Director Hemant Mamtani said.
“Indian market will continue to witness inflows in the whole year,” he added. Strong surge in FII inflows in 2012 so far has helped boost the equity markets and the rupee to strengthen. — PTI