India sees $4.78 bn FII inflows in November

Mirroring their faith in the Indian economy, overseas funds have infused a staggering $4.78 billion in the capital market in November, taking the year-to-date total to $39 billion.

With an investment of $4.78 billion in November, the total inflows of foreign institutional investors (FIIs) so far in 2010 have crossed the record $38.76-billion mark.

According to data with the Securities and Exchange Board of India, FIIs have made investments worth $4.11 billion in equities and poured $667.71 million into the debt market. According to analysts, FIIs have been pumping funds into emerging markets like India because of growth potential.

In an interview with CNBC-TV18, Mark Mobius of Templeton AMC had said that he expects $450 billion worth of investments in new issues in emerging markets like India.

However, Ashish Gupta, director - equity research, Credit Suisse said India had been attracting a disproportionately high share compared to its index weight. ''Compared to the pace at which it has come to India or the share that India has had total inflows into Asia, we expect moderation.

But given the global liquidity environment, we are actually hopeful that foreign inflows into Asia in absolute terms will also be larger than last year.

So, we expect 2011 inflows into Asia to be better than the inflows Asia saw in 2010. Although India's share in that will come down, we are not expecting a major slowdown in the absolute level of flows,'' Gupta said.