New Delhi, Sep : Foreign investment in the Indianstock markets may cross USD 10 billion-mark by the end of thismonth as a hefty USD 9.8 billion (Rs 47,674 crore) havealready been poured into the bourses by overseas entities sofar this year, analysts feel.
"FII inflows in the Indian equity market would continuein the coming days and it may cross USD 10 billion level bySeptember-end," Anand Rathi Financial Services Director & Headof Research Tarun Sisodia.
Foreign institutional investors (FIIs) are the net buyerof shares worth Rs 47,674 crore so far in this year, accordingto the data available with the market regulator or Securitiesand Exchange Board of India (SEBI).
The infusion of money by overseas investors in shares isa part of their portfolio management in various emergingmarkets and India is part of that strategy, Sisodia, who isbased in Mumbai, said.
So far in this month, foreign investors have infused overRs 7,400 crore (USD 1.5 billion), increasing their total netinvestment, since FIIs were allowed in India, to over Rs 2.78lakh crore (65 billion dollars), as per SEBI data.
"FII investment in the local markets may cross USD 10billion mark by end of this week. As everything is bullish andpicture of Indian stock market is very rosy," Delhi-based SMCGlobal's Vice President Rajesh Jain said.
Significantly, so far in 2009, the Bombay StockExchange's benchmark index Sensex gained over 73 per cent.Nifty, the benchmark index of National Stock Exchange has alsoadvanced fairly so far this year.
In long term, the rise in benchmark index would continue, Sisodia added.
"The Indian market has seen a huge inflow of funds fromoverseas investors and crossing 10 billion dollars level isnot tough in the current month," Ashika Stock Brokers ResearchHead Paras Bothra said.
After pulling out a hefty Rs 52,986 crore (11.9 billiondollars) from the local stock markets last year, FIIs remainednet seller of shares for the first two month of current year.
However, with the sign of revival of economies, the trendturned positive during March and marketmen feel that the yearwill close with huge inflows.
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