New Delhi: Call it the effect of the Congress-led UPA government or a hope of a revival for the Indian stock markets, the country has witnessed an inflow of nearly Rs 23,700 crore from overseas investors since the new term of Prime Minister Manmohan Singh.
An analysis of the Foreign Institutional Investors (FIIs) activity shows that since May 22, the day Prime Minister took oath for a second term to lead the United Progressive Alliance government; FIIs have made a net investment of Rs 23,688.8 crore in the domestic stock markets.
On August 29, the UPA government completed its 100 days in office with a mixed bag of good work on certain fronts while stumbling on several issues.
The inflow during the period (May 22-August 29) accounts for over 65 percent of the total FII inflow into the Indian stock markets.
According to the data available with market regulator Securities and Exchange Board of India (SEBI), so far in 2009, FIIs have made a net investment of Rs 39,179.60 crore.
During the period under review, July witnessed an inflow of Rs 11,066 crore, the highest in a month. In June the inflow was Rs 3,830 crore, while in August it is Rs 3,810 crore.
"FIIs have confidence in the India growth story and have invested at a cheaper level. Now that markets have moved up more participation would be seen as the foreign funds would like to be left out for participating in the rally," SMC Global Vice president Rajesh Jain said.
During the same period, Bombay Stock Exchange`s benchmark
index Sensex gained 15 percent to 15,922.34 level. On May 22,
Sensex had ended at 13,887.15.
The government`s 100-day programme reflected the Prime
Minister`s words, who made it clear to his Cabinet colleagues
that `business as usual will not do`.
The Union Budget 2009-10, presented by Finance Minister
Pranab Mukherjee sought to double the outlays for rural
development at a time of sluggish growth, which is expected to
be 6 percent this year.
The government has also come out with a new Direct Taxes
Code, which promises to simplify direct tax laws and promises
to put more money in the pocket of the tax payer. It also
came out with a Trade Policy with an ambitious target of USD
200 billion exports for 2010-11.