New Delhi: With foreign institutional investors turning their attention back to the Indian stock market, about one-third of the total outflows witnessed last year have already made its way into bourses so far this year.
After pulling out a hefty Rs52,987 crore from the Indian stock markets in 2008, which saw the Bombay Stock Exchange benchmark Sensex plunging 51%, FIIs have turned net buyers since from the last week of March this year.
Overseas investors started investing in Indian scrips and have put in Rs15,638.10 crore (over $3 billion), that is about one-third of last year’s total outflows so far in 2009, the latest data available with the Securities and Exchange Board of India (Sebi) shows.
So far in 2009, FIIs have made gross purchase of shares worth Rs1,76,245.80 crore, while they sold equities worth Rs1,60,607.70 crore, resulting in a net investment of shares worth Rs15,638.10 crore, the data shows.
Significantly, the Bombay Stock Exchange’s benchmark index Sensex gained nearly 44% so far this year to touch 14,302 points, the highest level in the past seven months.
The week ended 22 May saw over Rs6,000 crore coming in from overseas investors, reflecting their confidence in an emerging economy like India.
In May alone, FIIs made gross purchase of equities worth Rs55,001.10 crore and sold shares of Rs39,719.30 crore, resulting in a net investment of Rs15,281.60 crore ($3.1 billion).
During the past week, the Sensex witnessed its highest ever single-day gain of nearly 2,100 points to cross the 14,000 level on 18 May, also for the first time in 2009.
However, FII inflows are still a long way from their record of $11 billion investment into Indian stocks set in 2007.
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.