FII inflows cross $5 b in January

Overseas investors poured in over Rs 26,000 crore (US$5.08 billion) in Indian markets in January 2012, the highest one-month net inflow in 16 months.

Foreign Institutional Investors (FIIs) purchased equities and debt securities worth a gross amount of Rs 76,548 crore in January 2012, while their gross sales for the month were worth Rs 50,219 crore, translating into a net inflow of Rs 26,329 crore, as per Sebi data. This is the highest net investment by FIIs in stocks and bonds since September 2010.

FIIs had mostly stayed away from Indian equities in 2011 but made net investment worth Rs 10,358 crore in stocks the first month of 2012. However, they appeared more bullish on the debt market, where they made a net inflow of Rs 15,971 crore.

In 2011, FIIs purchased stocks and bonds worth Rs 8 lakh crore, but sold securities worth Rs 7.9 lakh crore, resulting in a net investment of Rs 17,480 crore during the year.

Investors flocked toward the debt market in 2011, investing of Rs 20,293 crore, but stayed away from the equity market, pulling out Rs 2,812 crore.