According to data available with the Securities and Exchange Board of India (SEBI), FIIs bought stocks worth $588.73 million during the week ended Sep 9, taking the total net inflow during the month to $661.15 million. A good start to the month, when compared to the $2.39 billion they sold in August.
During the week, benchmark indices only nudged up as traders chose to sell amid uncertain global cues, wiping out the gains notched up during the early part of the week. The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange ended the week at 16,866.97 points, up 0.27 percent or 45.51 points from the previous week's close at 16,821.46 points.
FII inflows have been tardy to say the least in 2011. The net inflows till the last week of August from overseas institutional buyers had turned negative. Compare this to the record $28.83 billion overseas funds pumped into the Indian markets in 2010. However, because of this week's robust buying interest, the net inflows for 2011 as on Sep 9 now stand at a little over $705 million.
The coming week, will see the Reserve Bank of India meeting to take a call on interest rates. If it hikes rates again, it could stocks tumbling at least in the short-run. FIIs, though, may still find India and other emerging markets a better investment destination given the economic turmoil in western countries.