FIIs pump over Rs3,000 crore into Indian equities in a week
10 March 2014
Foreign investors have pumped over Rs3,000 crore into Indian stock markets during the week ended 7 March 2014 on hopes of a favourable mandate for a government after the next elections by the middle of the current year.
General elections have been scheduled for the country starting next month.
Foreign institutional investors (FIIs) bought shares worth a total Rs18,944 crore in Indian stock markets, while they sold stocks worth aound Rs15,869 crore till 7 March 2014, resulting in a net inflow of Rs 3,075 crore ($498 million), according to data with the Securities and Exchange Board of India.
FIIs also invested Rs10,358 crore ($1.67 billion) in the debt market during the week.
FIIs seems to have overcome concerns of further tapering by the US Federal Reserve as also the slowdown in China.
FIIs, the major drivers of the Indian stock market, have helped push the benchmark BSE sensex almost 800 points, or 3.79 per cent, to a record close in the past week.
Overseas investors have purchased a net Rs5,193 crore of stocks so far in 2014. They invested a net Rs1,404 crore in equities in February and Rs714 crore in stocks in January.
As of 7 March 2014, there were 1,721 registered FIIs in the country and 6,306 sub-accounts.
Finance minister P Chidambaram said last week that the country's fiscal and current account deficits are under control and the economy is more stable than it was 18 months ago, although this did not influence the market much.
However, analysts hope a sharp drop in the current account deficit and easing of inflation would bolstered expectations that the economy will see a turnaround soon.