Ignoring concerns, FIIs pumps Rs 8,400 cr in stocks in July

Mumbai: Foreign investors have poured a little over Rs 8,400 crore into the Indian equity market this month so far sidelining concerns over weak monsoon, slowing economic growth and a high interest rate regime.

After three consecutive months (April-June) of selling, overseas investors infused Rs 8,424 crore into the equity market till 27 July, according to the data available with the Securities and Exchange Board of India.

Market experts said foreign investors have sidelined concerns over weak monsoon, slowing economic growth and a high interest rate regime, mainly on hopes that government would initiate fresh reforms initiatives as Prime Minister Manmohan Singh had taken the additional charge of the finance portfolio.

Besides, investors are expectig that the government would initiate a few key reforms before the start of the Monsoon Session of Parliament on 8 August.

During 3-7 July, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 44,192 crore, while they sold equities amounting to Rs 35,768 crore, translating into a net inflow of Rs 8,424 crore

In addition, FIIs have also invested Rs 3,187 crore in the debt market so far this month.

Buoyed by strong inflows, BSE’s benchmark Sensex surged 591 points or 3.3% so far this month to settle at 16,839.19 points on 27 July.

After taking the latest inflows into account, FIIs investment in the equity market stood at Rs 50,417 crore so far in 2012 and Rs 24,048 crore into the debt market during the same period.

As on 27 July, the number of registered FIIs in the country stood at 1,756 and total number of sub-accounts were 6,341 during the same period.