FIIs invest record USD 6.11 billion in October

With an investment of USD 6.11 billion in just 25 days in October, the total inflows of foreign institutional investors (FIIs) so far in 2010 has crossed USD 24.48 billion-mark that is also a record investment came in a single calender year.
According to the country's top fund house -- Reliance Mutual Fund -- this fund inflows into India is likely to go up further in the coming days, as FIIs see better growth opportunities here compared to the other markets.

"FIIs see better rate of returns in emerging markets and India is set to attract disproportionate share of inflows," Reliance Mutual Fund's Head of Equities Sunil Singhania said.

As per data available with the capital market regulator Securities and Exchange Board of India (Sebi), inflows came in the current month has surpassed the record monthly investment of USD 5.89 billion (Rs 23,872 crore) made in July, 2007.
According to Singhania India received over 40 per cent of FII inflows into emerging market equities in the current year, as they have strong faith in resilient domestic economy.

"India took 60 years to get to its first USD 1 trillion GDP in FY'08, but the move to USD 2 trillion GDP would be in next 5-6 years, similar to that of China," he said.
"Due to the huge consumption and savings/investment boom, USD 2 trillion GDP is not a destination, but a milestone in India's ongoing journey towards USD 4 trillion GDP in the subsequent 5-7 years, and so on," Singhania added.

In October only, foreign investment in the Indian stock market crossed the magic Rs 1 trillion-mark (USD 22 billion) for the first time in history.

The sharp rise in FII flows to Indian stocks has pushed up the market. The BSE benchmark Sensex has risen over 15 per cent so far this year and last month the index re-gained the magical 20,000 level after a gap of two and half years.
"A significant FII money will flow into the BRIC (Brazil, Russia, India and China) markets and India will gets its share of investments," he said.

Worth to mention, the recently concluded Rs 15,000-crore mega Coal India public offer attracted a whopping inflow of about Rs 1.2 lakh crore from FIIs, more than the record Rs 1.11 lakh crore they have invested in Indian stocks so far this year.