New Delhi: Foreign institutional investors (FIIs), who had turned away from the Indian equity market last year, seem to be returning back as since the beginning of the new financial year 2009-10 they have already put in over Rs1,000 crore into the domestic stocks.
FIIs seem to have embarked on fresh buying mode and made net investments of Rs1,056.1 crore since 1 April, the latest data available with the market regulator Securities and Exchange Board of India (Sebi) website shows.
Significantly, in last fiscal, FIIs had pulled out close to Rs50,000 crore at the domestic stock market, almost equaling the inflow in the previous financial year.
According to Sebi data, FIIs’ net outflows have been Rs47,706.2 crore till 30 March in the fiscal year 2008-09 as against huge inflows of Rs53,000 crore in FY08.
Further, the Bombay Stock Exchange’s benchmark index Sensex has witnessed a rally in the past two weeks although the trading sessions have been just five due to holidays in between.
Since the beginning of the new financial year, Sensex has gained over 900 points or over 9%. On Thursday, the last trading day of the week, Sensex closed at 10,803.86 points.
Besides, FIIs have also made net investments in the debt segment to the tune of Rs620 crore in the first five days of the FY10.
Interestingly, it seems that domestic mutual fund houses are still concerned about the movement of the equity market as they have been net investors of just Rs38.3 crore in this fiscal, the latest data available with Sebi shows.
However, fund houses have put in significantly more amount in the debt segment in the first few days of the fiscal year. They have made investments of nearly Rs9,000 crore in the debt segment in April so far, the latest data shows.
Since the beginning of 2009, domestic institutional investors (which include mutual fund houses, insurance firms and others) have made a net investment of Rs10,558.98 crore in shares, the latest provisional data with the BSE shows.
In the fiscal year 2008-09, the country’s mutual fund industry witnessed a nearly Rs37,000 crore decline in its assets, with top fund house Reliance MF accounting for a little less than one-third of the losses.