A couple of weeks ago, the Dainik Hindustan carried my article on the termination of UTI Mutual...
The Bombay Stock Exchange finally resumed trading on its BOLT system after halting the trade for over two and a half hours till 2.30pm
New Delhi: Foreign institutional investors (FIIs) infused a record $6.4 billion in October, accounting for nearly one-fourth of the total inflows came in stock market so far this year, reports PTI.
As per the data available with capital market regulator Securities and Exchange Board of India (SEBI), overseas fund houses were net buyers of Indian equities worth $6.42 billion (Rs28,562 crore) during the current month, the highest amount pumped in by the FIIs in any single month.
With this heavy inflow in just one month, the total net investment by FIIs on the local stocks now stands at $24.79 billion (Rs1.12 lakh crore), the highest in a single year.
Market experts said the inflows of overseas funds will not stop here only as they have the opportunity of the better rate of returns in emerging economies like India. This heavy inflow is causing appreciation in the local currency.
"Capital inflows into the country will be higher in the second-half of the fiscal and the rupee will appreciate up to INR 43.44 by end-FY 11 from the current INR 44.60, domestic brokerage Unicon Financial said, quoting a Crisil report.
Crisil expects the country's gross domestic product (GDP) to grow by 8.2% in the current fiscal and continue with the same momentum for the next decade, courtesy the consumption arising out of India's demographics.
However, the heavy inflows in October failed to lift the BSE benchmark Sensex this month. The 30-share index fell 0.2% in October, first monthly drop after May.
The Sensex had gained over 10% in the previous month, a period during which FIIs invested a net $5.42 billion (Rs2,4978 crore). Analysts said the mega Rs15,000 crore IPO by Coal India was a major reason behind the diversion of foreign funds from secondary market to the primary market.