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FIIs net purchases in equities at Rs.2,266.8 crore
Mumbai: Foreign Institutional Investors (FIIs) recorded net purchases in equities at Rs2266.8 crore ($523.5 million) for the trading week ended July 1 while mutual funds (MFs) were net sellers at Rs431.74 crore.

The foreign funds were net purchasers in the debt market at Rs9.5 crore ($2.1 million) for the period under review, according to the data available with the Securities and Exchange Board of India (SEBI).

The mutual funds were net purchasers in the debt market at Rs293.77 crore.
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FII inflows lead to murmurs on the street
Mumbai: FII inflows into the market, for the month of June, stood at $1.2 billion (over Rs5,220 crore), most of it arriving in the last two weeks. This record FII inflow is the main factor that has kept the benchmark Sensex above the 7,200 level. According to Sebi data, the markets had experienced a net outflow of $261 million in May.

The market is agog with speculation that most FII purchases were from Japanese and Taiwanese funds. FIIs were involved in many of the block deals-which are executed at predetermined prices in synchronised deals-on the street.

Market sources say that it needs to be determined whether the FII money coming to India belongs to Indians or genuine foreign investors. According to these sources, Sebi should review the systems and rules to plug the loopholes. They point out that in 2000, Indian promoters and brokers had similarly invested in stocks misusing the OCB (overseas corporate body) route through Mauritius.

Share prices were then rigged with the OCB money that came from abroad. When the scam came to light, regulators were forced to ban the OCB route.
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Uttam Galva raises $15 million
Mumbai: Galvanised steel manufacturer Uttam Galva Steel Ltd has raised $15 million by way of External Commercial Borrowings (ECBs) in order to fund its Rs400 crore expansion plans. Uttam Galva intends to double capacity to one million metric tonnes per annum.

The firm said that while the Syndicate Bank has issued $5 million, the Bank of India has issued the remaining $10 million at interest rates two per cent above the current three months' LIBOR.

Its expansion plans include commissioning of a 6-HI Reversible Cold Rolling Mill, which would increase its cold rolling capacity by 50 per cent to 7.5 lakh MT per annum.

Uttam Galva was aiming to increase its turnover to six lakh tonnes during the current fiscal from 4.5 lakh tonnes in the last fiscal.

The company board has given the sanction for raising funds to the tune of $60 million through various finance options, company officials have said.
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