BackFIIs invest record $6.11 billion in October
FIIs invest record $6.11 billion in October
PremiumNew Delhi: Showing their faith on the Indian economy, overseas funds infused a whopping $6.11 billion in October, the highest amount brought in any single month by the foreign institutional investors (FIIs) since they were allowed for investment in local stocks.
With an investment of $6.11 billion in just 25 days in October, the total inflows of FIIs so far in 2010 has crossed $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 $5.89 billion (Rs23,872 crore) made in July, 2007.
According to Singhania India received over 40% 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 $1 trillion GDP in FY’08, but the move to $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, $2 trillion GDP is not a destination, but a milestone in India’s ongoing journey towards $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 Rs1 trillion-mark ($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% 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 Rs15,000-crore mega Coal India public offer attracted a whopping inflow of about Rs1.2 lakh crore from FIIs, more than the record Rs1.11 lakh crore they have invested in Indian stocks so far this year.
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