In 100 days of UPA, FIIs invest Rs 23k cr in stocks

Shows confidence in Indias growth story

 
An analysis of the foreign institutional investors (FIIs) activity shows that since May 22 2009, the day  Singh took oath for a second term to lead the United Progressive Alliance government, FIIs have made a net investment of Rs 23,688.8 crore in the domestic stock markets.

On August 29, the UPA government completed its 100 days in office with a mixed bag of good work on certain fronts while stumbling on several issues. The inflow during the period (May 22 to August 29) accounts for over 65 per cent of the total FII inflow into the Indian stock markets. According to the data available with market regulator Securities and Exchange Board of India (Sebi), so far in 2009 FIIs have made a net investment of Rs 39,179.60 crore.

During the period under review, July witnessed an inflow of Rs 11,066 crore, the highest in a month. In June the inflow was Rs 3,830 crore, while in August it is Rs 3,810 crore.
“FIIs have confidence in the India growth story and have invested at a cheaper level. Now that markets have moved up more participation would be seen,” SMC Global Vice President Rajesh Jain said. During the same period, Bombay Stock Exchange’s benchmark index Sensex gained 15 per cent to close at the 15,922.34 level. On May 22, Sensex had ended at 13,887.15.

The government’s 100-day programme reflected the prime minister’s words who made it clear to his Cabinet colleagues that ‘business as usual will not do’. The Union Budget 2009-10, presented by Finance Minister Pranab Mukherjee sought to double the outlays for rural development at a time of sluggish growth, which is expected to be 6 per cent this year.

The government has also come out with a new Direct Taxes Code, which promises to simplify direct tax laws and promises to put more money in the pocket of the tax payer. It also came out with a trade policy with an ambitious target of $200 billion exports for 2010-11.