FIIs pump in $2.5 billion in the Indian stock market in August

New Delhi: Maintaining their bullish stance for the third month in a row, global fund houses made a net investment of Rs11,685 crore ($2.5 billion) in Indian equities in August, reports PTI.

As per the data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors (FIIs) purchased shares worth Rs62,187.50 crore, while they offloaded equities worth Rs50,500.40 crore during August, resulting in a net investment of Rs11,687.50 crore.

With the August inflow, the total investment made by FIIs in the local stocks now stands at Rs60,447 crore ($13.1 billion) so far this year.

Analysts believe that the Indian market is likely to attract more inflow from overseas in medium to long-term investments, as they see higher return from emerging economies.

"FII inflow is likely to be robust in the medium to long-term, as Indian equities are still under-owned by foreign investors as compared to their peers in the other emerging markets," Anil Ambani Group's renowned fund manager Madhusudan Kela has said.

The sustained inflow by overseas funds helped the Bombay Stock Exchange benchmark Sensex record a rise of 0.6% in August, though domestic institutional investors (both mutual fund and insurance companies) have been continuous net sellers due to redemption pressure and valuation discomfort.

In June and July, FIIs made a total net investment of Rs27,125 crore.

FIIs play a significant role in domestic equity markets and their movement (inflow and outflow) causes fluctuation in benchmark indices.

FIIs had pumped a record Rs83,400 crore into the domestic equities in 2009, but started exiting in early 2010. In January, they were net sellers of Rs500 crore.

But from February, the scenario started changing and they were net buyers of Rs1,216 crore. In April, FIIs were net purchasers of shares worth Rs9,361 crore, after pumping in Rs19,928 crore in March.


Govt to allow export of 55 lakh bales of cotton from October

New Delhi: The government will allow unrestricted export of 55 lakh bales of cotton from 1st October but dispatches beyond the ceiling would attract export duty of Rs2500 per tonne, reports PTI quoting a government official.

Cotton production this season, starting next month, is projected at a record 330 lakh bales, the official told PTI.

In the cotton year 2009-2010 (Oct-Sep), the production was 292 lakh bales. One bale is equal to 170 kg.

The decision to allow unrestricted export of 55 lakh bales was taken at a meeting of commerce secretary Rahul Khullar, agriculture secretary P K Basu and textiles secretary Rita Menon here on 1st September, he said.

However, exporters will have to register their overseas contracts with the Textiles Commissioner. The registration process is scheduled to start from 15th September, he said.

With domestic consumption estimates of 220 lakh bales, the country may have a closing stock of 50-55 lakh bales at the end of the season.

While cotton exports aggregated about 83 lakh bales during the last season and closing stocks 40.5 lakh bales, the government had brought in several restrictions in the wake of high prices of the natural fibre.

Cotton prices had increased by about 35% in the global market between October 2009 and May 2010.

The commerce secretary had earlier said that overseas shipments of cotton beyond the quota would attract export duty.

The export restrictions, which were mostly announced during April-May this year, included export duty of Rs2,500 per tonne and suspension of registration of new export contracts, besides restriction of shipments under the licence regime.

The government has also announced doing away with the licence regime.


LIC to invest Rs1,000 crore in mall-cum-office complex at Mohali

Chandigarh: State-owned insurance major Life Insurance Corporation of India (LIC) today said that will invest a sum of Rs1,000 crore to develop a mall-cum-office complex at Mohali, reports PTI.

"The expected investment in developing a mall-cum-office complex in Mohali will be Rs1,000 crore and it may be ready within one-and-a-half to two years," a senior LIC official, who declined to be identified, told reporters here.

On 9.6 acres of land LIC has proposed to build 6 lakh square feet of area for this project. "Three lakh square feet will be developed for shopping and a mall while remaining 3 lakh square feet area will have offices," he said.

Currently, LIC is in the process of hiring an architect for this ambitious real estate project. Consultancy agency IL&FS has also submitted its report on how to go about this project, he revealed.

LIC had bought 9.6 acres of land at a prime location through an auction, which was conducted by Greater Mohali Area Development Authority in 2008 by shelling out Rs465 crore.

Interestingly, throughout the auction, LIC remained the sole bidder for this project and paid just over Rs1 lakh per square yard, which was the highest ever rate in the region at that point of time.

LIC has already developed real estate projects in Mumbai and Bangalore. "LIC has also plans to develop a shopping mall in Kolkata where it possesses 5 acres of land," he further said.

Besides, LIC has 3.6 acres of land in Ludhiana which it bought in September 2008 at a sum of Rs228 crore.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)