New Delhi: The Indian stock markets witnessed
a net inflow of Rs 24,800 crore from overseas investors during
December quarter in the current financial year.
During the three month period (October-December), foreign
institutional investors (FIIs) made a net buy of shares worth
Rs 24,807.1 crore, data complied from market regulator
Securities and Exchange Board of India (SEBI) said.
In the quarter under review, December attracted the
highest inflow of Rs 10,233.1 crore (USD 2.1 billion), followed
by October (Rs 9,077 crore) and November (5,497 crore).
Interestingly, during December quarter, the stock market
benchmark Sensex grew by just 1.97 percent. During 2009, the
barometer registered a rise of 81 percent.
According to analysis of data available with the SEBI,
during the same period (Oct-Dec quarter), FIIs infused a net
Rs 6,050 crore in debt instruments.
After their flight last year, FIIs flocked back to bet on
the India growth story and poured in a record Rs 83,424 crore
in domestic equities during the year just passed.
Marketmen says FII inflow in India would continue this
year as well.
"FIIs will continue to be positive in our markets and in
general Indian markets will fare well in 2010," Purpleline
Investment Advisors director P K Agarwal said.
The trend of strong FII inflows to the tune of Rs 31,000
crore (about 6.3 billion dollars) witnessed during April-June
quarter gained further during the September quarter of current
fiscal and the period witnessed an infusion of hefty Rs 34,313
FII investment of Rs 83,420 crore in 2009 is the highest
ever inflow in the country in rupee terms in a single year and
comes a year after they pulled out over Rs 50,000 crore.
The inflow in 2009 broke the previous high of Rs 71,486
crore parked by foreign fund houses in domestic equities in
Interestingly, the whopping inflow by FIIs into the local
stock markets has alarmed the government and other authorities
The inflow has also made industry chambers like Assocham
demanding a two-percentage point tax on FII funds, whereas the
exporter body FIEO (Federation of Indian Export Organisations)
has asked the government intervention to contain the flow.