Mumbai: Overseas investors have pumped in more than Rs 1,400 crore (USD 254 million) in the Indian stock market in the first week of March.
This takes their total investment tally to Rs 47,909 crore (USD 8.88 billion) in the country's equity market in calendar year 2013 so far.
During March 1-8, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 24,206 crore, while they sold equities amounting to Rs 22,795 crore, translating to a net investment of Rs 1,411 crore (USD 254 million), as per data provided by market regulator SEBI.
"FIIs continued to be bullish on Indian equities and heavily invested in Sensex and Nifty companies. We expect this inflow would continue in the coming months as well because Finance Minister P Chidambaram has hinted that he would take reform initiates in the Parliament session," CNI Research CMD Kishor Ostwal said.
Another market analyst, however, said the country's economic growth and instability in rupee are the major concerns for foreign investors.
In a move to attract more foreign investment into the Indian equity market, the Finance Minister has proposed to strengthen SEBI and cut the securities transaction tax, which would bring down overall costs for investors.
Wooing overseas investors, he said SEBI would simplify the procedures and prescribe uniform registration norms for foreign portfolio investors.
It seems that FIIs are preferring debt route over equity, as they have infused Rs 3,184 crore (USD 585 million) in the bond market in March 1-8 period. This takes the overall net investments by FIIs into debt markets to Rs 10,132 crore (USD 1.87 billion) so far in 2013.
FIIs bought equities worth USD 24.4 billion in 2012.
As on March 8, the number of registered FIIs in the country stood at 1,756 and total number of sub-accounts was 6,337.