labels: investment - general
More foreign funds in 2001news
By Our Markets Bureau
03 January 2002

Mumbai: Foreign funds increased their investment in Indian shares in 2001, notwithstanding a series of scandals.

According to the Securities and Exchange Board of India (Sebi), foreign funds made net purchases of $2.74 billion in 2001 nearly 80 per cent up from the previous year. During the same period, the benchmark Bombay share index shed 17.7 per cent.

Barring September, overseas funds were net buyers every month throughout 2001.
Foreign funds have so far invested $14.55 billion since India opened doors to multinationals.

Even as fund managers were tempted by low and attractive valuations in the old economy sector, domestic drug companies emerged as the favourites, as they increased exports aided by strong research and development.

Foreign funds are optimistic about the Indian economy, which has been one of the fastest growing in the world over the past decade and is expected to post a healthy 5-per cent growth this fiscal.

Fund managers say Indian markets have become safer after a recent spate of regulatory measures aimed at improving market efficiency. Sebi abolished carryforward trading in July after the system was blamed for excessive volatility and a market slide, replacing the century-old badla with derivative products similar to those in developed global markets.


 


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More foreign funds in 2001