FIIs shop for stocks worth $1.16 billion in first 20 days of 2012

Between 2nd and 20th January, foreign investors infused $1.16 billion, or Rs6,007 crore, into the Indian equity market, but were more bullish on the debt market, making a net investment of Rs15,933 crore during the same period, according to SEBI data

Mumbai: Foreign Institutional Investors (FIIs) stayed away from Indian equities in 2011, but have already shopped for stocks worth $1.16 billion (or Rs6,007 crore) in the first month of 2012.

Between 2nd and 20th January, foreign investors infused $1.16 billion, or Rs6,007 crore, into the Indian equity market, but were more bullish on the debt market, making a net investment of Rs15,933 crore during the same period, according to data from the Securities and Exchange Board of India (SEBI).

Market experts believe that rupee strengthening and easing concerns over inflation and economic growth have helped foreign investors step up buying in recent sessions.

Analysts said the weak earnings outlook is only a matter of concern in the short-term, as conditions may improve in line with changes in the domestic and global macro-environment.

FIIs purchased gross equities and debt securities worth Rs55,902 crore and sold shares and bonds to the tune of Rs33,962 crore during the period, translating into a net investment of Rs21,940 crore, SEBI added.

This is the third straight week of inflows into the Indian stock and debt markets by overseas investors.

Buoyed by sustained FII inflows, the stock market barometer BSE Sensex has gained around 1,284 points, or 8.30%, so far in January. In the last trading session, the key BSE index finished at 16,739.01, up 95.27 points from its previous close.

In the year 2011, FIIs purchased stocks and bonds worth Rs8 lakh crore, but sold securities worth Rs7.9 lakh crore, resulting in a net investment of Rs17,480 crore during the year.

Investors flocked toward the debt market in 2011, making an investment of Rs20,293 crore, but stayed away from the equity market, pulling out Rs2,812 crore.

 

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