FIIs infuse Rs 24,800 cr in Indian stock mkts in Dec quarter

New Delhi, Jan 3 : The Indian stock markets witnesseda net inflow of Rs 24,800 crore from overseas investors duringDecember quarter in the current financial year.

During the three month period (October-December), foreigninstitutional investors (FIIs) made a net buy of shares worthRs 24,807.1 crore, data complied from market regulatorSecurities and Exchange Board of India (SEBI) said.

In the quarter under review, December attracted thehighest inflow of Rs 10,233.1 crore(USD 2.1 billion), followedby October (Rs 9,077 crore) and November (5,497 crore).

Interestingly, during December quarter, the stock marketbenchmark Sensex grew by just 1.97 per cent. During 2009, thebarometer registered a rise of 81 per cent.

According to analysis of data available with the SEBI,during the same period (Oct-Dec quarter), FIIs infused a netRs 6,050 crore in debt instruments.

After their flight last year, FIIs flocked back to bet onthe India growth story and poured in a record Rs 83,424 crorein domestic equities during the year just passed.

Marketmen says FII inflow in India would continue thisyear as well.

"FIIs will continue to be positive in our markets and ingeneral Indian markets will fare well in 2010," PurplelineInvestment Advisors director P K Agarwal said.

The trend of strong FII inflows to the tune of Rs 31,000crore (about 6.3 billion dollars) witnessed during April-Junequarter gained further during the September quarter of currentfiscal and the period witnessed an infusion of hefty Rs 34,313crore.

FII investment of Rs 83,420 crore in 2009 is the highestever inflow in the country in rupee terms in a single year andcomes a year after they pulled out over Rs 50,000 crore.

The inflow in 2009 broke the previous high of Rs 71,486crore parked by foreign fund houses in domestic equities in2007.

Interestingly, the whopping inflow by FIIs into the localstock markets has alarmed the government and other authoritiesconcerned.

The inflow has also made industry chambers like Assochamdemanding a two-percentage point tax on FII funds, whereas theexporter body FIEO (Federation of Indian Export Organisations)has asked the government intervention to contain the flow.