Home » FIIs invest over $20.10 bn in equities

FIIs invest over $20.10 bn in equities

FIIs invest over $20.10 bn in equities

Data from Securities and Exchange Board of India (SEBI) shows that foreign institutional investors (FIIs) have deployed $20.10 billion in Indian equities in the January-November 2012 period.

Reports suggest that this is the second time FII investment has risen to such a level after India threw open the stock market in 1993 for global investors. In 2010, global funds invested $29.32 billion in Indian equities.

Some analysts feel that the expansionary monetary policy pursued by the central banks of Europe and US is one of the factors for rise in FII investment.’

Another reason cited by analysts is the weakness in rupee exchange rate against the dollar. A drop of 3.27 percent in rupee saw that investors trading in dollars could buy more stocks.

Also, a slew of reform measures taken by the government in the last two months also contributed to the rise in FII flows, reports suggest. Of the present $20.10 billion, two thirds came after September. Relaxing foreign investment norms in aviation and retail and equities gaining 25 percent this fiscal made India a strong emerging market.

Sensex of BSE marked a rise by 25.14 percent and Nifty of NSE rose 27.12 percent up to November. Among the emerging markets in Asia, Sensex stands in the fifth spot and the Nifty occupies the fourth spot.

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