Foreign institutional investors (FIIs) purchased equities and debt securities worth a gross amount of Rs 26,004 crore so far this month. However, they also sold shares and bonds worth Rs 19,544.3 crore in the same period, resulting into a net investment of Rs 6,460 crore for the period, according to the information available with market regulator Sebi.
“Situation has been improving in the last few trading session as investors are again coming back to equity market due to cooling inflation and decline in crude oil prices,” CNI Research Head Kishor Ostwal said.
Investors had shunned emerging markets such as India in the first half of this year as these countries battled inflation. Besides, high interest rate was also considered as a risk to these countries.
FIIs were interested in the debt market in the first six months of the year, making a net investment of Rs 9,948 crore during the period while their investments in stocks stood at Rs 2,670 crore.
The number of FIIs registered with Sebi marginally rose from 1,718 as of December 31, 2010, to 1,730 as of July this year.