Mumbai: Betting big on the Indian equity markets, overseas investors have invested a little over Rs 3,600 crore in stocks this month so far over expectations of more reform measures by the government.
From November 1-16, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 24,944 crore and sellers of equities worth Rs 21,326 crore, translating into net inflow of Rs 3,618 crore, according to the Sebi data.
Experts said foreign investors continue to invest in equities on expectations of more reform steps in the upcoming winter session of Parliament.
They further said that inflows would continue if the government ensures a productive Parliament session.
"Overseas investors continued with the positive bias towards Indian equities as they are hopeful that the winter session of Parliament would extend the reforms," Wellindia Vice-President, Research, Vivek Negi said.
Kishor Ostwal, Head at CNI Research, said, "Steps taken by the government are being seen as market friendly by investors and in my view FIIs will continue to react positively on the domestic equity market."
FII investment in the Indian equity market has been Rs 97,313 crore (USD 18.7 billion) in 2012 so far.
FIIs have been betting high on the Indian equities in the last few months and infused a net amount of more than Rs 51,000 crore in July-October period on the back of a slew of reforms initiated by the government, pushing the broader market Sensex to surge over 1,300 points or more than seven percent during the period.
This month FIIs also infused Rs 331 crore in the debt market.
However, the BSE barometer Sensex has dropped by about 195 points, or 1.05 percent so far this month. The 30-share index settled at 18,309.37 points on Friday last week.
As on November 9, the number of registered FIIs in the country stood at 1,750 and total number of sub-accounts were at 6,273.
First Published: Sunday, November 18, 2012, 14:40