FII inflows cross $3 b

Majority of funds came in last five trading sessions

As per latest data available with the Securities & Exchange Board of India (Sebi), FIIs made net purchases worth $3.2 billion or over Rs 15,725 crore so far in 2009, with the stock market seeing major investments in the past three weeks.

On Tuesday alone, FIIs put in as much as Rs 5,044.8 crore ($1.06 billion) in the domestic share markets, the Sebi data shows. “Since several past weeks, overseas fund houses are making investments in the many emerging markets and India is the part of that investment,” brokerage firm Sharekhan’s Research Head Gaurav Dua said from Mumbai.

Since last week, FII inflows increased significantly with net investments of Rs 4,085 crore on May 14, followed by 1,000 crore on May 18, Rs 53 crore on May 19 and again a huge Rs 5,044 crore on May 20.

Sale of shares

However, during the period, the markets also witnessed sale of shares worth Rs 345 crore by the overseas investors, the Sebi data shows. Since the beginning of new fiscal year, FIIs have started putting money in domestic stocks, including blue-chips.

In May alone, FIIs made gross purchases of equities worth Rs 44,705.2 crore and sold shares of Rs 29,336.1 crore, resulting in a net investment of Rs 15,368.80 crore ($3.1 billion).

After pulling out a hefty Rs 52,987 crore from the Indian stock markets in 2008, which saw the Bombay Stock Exchange benchmark Sensex plunging 51 per cent, FIIs have turned net buyers during the last week of April. The Sensex has gained over 45 per cent so far this year to touch 14,302 points, the highest level in the past seven months. The BSE’s Sensex had scaled a high of 21,206.77 points in January last year, but dipped to a low of 7,697.39 points in October. It had closed the trade at 9,647.31 points in 2008.
Indicating a revival in the stock market, the flight of FIIs back to the Indian markets saw an infusion of Rs 6,508 crore in the capital market in April alone, the highest monthly infusion so far this year. An analysis of the data of foreign investment showed that the confidence of FIIs in Indian equities has started to build in the month of March as they bought equities worth Rs 530 crore.