NEW DELHI, Nov 4 (PTI): Overseas investors pumped in more than Rs 157
billion in the Indian equity market in October, continuing their buying
spree amid easing concerns over the US tapering its monetary stimulus.
Total foreign investment in the stock market has reached Rs 907.15 billion so far in 2013, according to data from market regulator Securities and Exchange Board of India ( Sebi).
Foreign institutional investors (FIIs) were gross buyers of equities worth Rs 570.51 billion and sellers of Rs 413.45 billion of shares in October, resulting in a net inflow of Rs 157.06 billion. This is the second consecutive month of inflows.
FIIs had invested a net Rs 130 billion in stocks in September, following three straight months of net FII equity outflows amounting to Rs 230 billion.
However, FIIs pulled out Rs 135.78 billion from debt securities in October. This takes the net outflow from the debt market to Rs 512.12 billion since the beginning of the year.
"Since September 2013, markets have been witnessing buoyant FII inflows, not merely on the back of continued global liquidity as the US Fed appears to have postponed withdrawal of its monetary stimulus for now, but also on account of our receding external risks," a market analyst said.
"The latter can be mainly attributed to the anticipated moderation in our current account deficit as well as policy measures taken to attract capital in order to finance the deficit," he added.
FIIs have helped push up the benchmark S&P BSE Sensex by about 1,785 points, or 9.2 per cent, during the month to settle at 21,164.52 points on October 31.
At the end of October, the number of registered FIIs in the country stood at 1,749 and the total number of sub-accounts at 6,369.
Total foreign investment in the stock market has reached Rs 907.15 billion so far in 2013, according to data from market regulator Securities and Exchange Board of India ( Sebi).
Foreign institutional investors (FIIs) were gross buyers of equities worth Rs 570.51 billion and sellers of Rs 413.45 billion of shares in October, resulting in a net inflow of Rs 157.06 billion. This is the second consecutive month of inflows.
FIIs had invested a net Rs 130 billion in stocks in September, following three straight months of net FII equity outflows amounting to Rs 230 billion.
However, FIIs pulled out Rs 135.78 billion from debt securities in October. This takes the net outflow from the debt market to Rs 512.12 billion since the beginning of the year.
"Since September 2013, markets have been witnessing buoyant FII inflows, not merely on the back of continued global liquidity as the US Fed appears to have postponed withdrawal of its monetary stimulus for now, but also on account of our receding external risks," a market analyst said.
"The latter can be mainly attributed to the anticipated moderation in our current account deficit as well as policy measures taken to attract capital in order to finance the deficit," he added.
FIIs have helped push up the benchmark S&P BSE Sensex by about 1,785 points, or 9.2 per cent, during the month to settle at 21,164.52 points on October 31.
At the end of October, the number of registered FIIs in the country stood at 1,749 and the total number of sub-accounts at 6,369.
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