Sunday, May 3, 2009

FIIs turn net investors in 2009, inject Rs 356 cr in equities

New Delhi May 3: Foreign Instituional Investors (FIIs) have emerged as net buyers in the Indian stock markets after a one year face-off, with net investment of Rs 356 crore in the first four months of the year.

So far this year, FIIs have made a gross purchase of equities worth Rs 1,21,245 crore and sold equities valued at Rs 1,20,888 crore, resulting in net investment of Rs 356 crore, as per the data available with the market regulator Sebi.

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 at the end of Wednesday's trade.

"Risk aversion has reduced and FIIs have started showing confidence in India. They know that the India growth story is intact and in long run the market is going to give better returns," SMC Global Vice President Rajesh Jain said.

Analysts say strenghtening of Rupee against the US greenback in the last one month signals that the flow of foreign funds are coming back to the country.

The rupee, which had touched a high of Rs 52 against the US dollar, has now appreciated and is hovering around Rs 49 a dollar mark.

"The US dollar is getting weaker as the FIIs, sensing a turn around, are now focussing on the emerging economies as their investment destination," Mr. Jain added.

No comments: