New Delhi: The equity markets witnessed a
net inflow of Rs 5,400 core from overseas investors during
November, taking their total investment in the country so far
this year to over Rs 73,100 crore, the highest ever inflow in
a single year.
In November, foreign institutional investors (FIIs)
bought shares worth Rs 51,063.10 crore, and sold equities
worth Rs 45,565.90 crore, resulting in a net investment of Rs
5,497 crore, according to the data available with the market
regulator Securities and Exchange Board (SEBI).
The record inflow by FIIs into the local stock markets
has alarmed the government and other authorities concerned. It
has also made industry chambers like Assocham demanding a
two-percentage point tax on FII funds, while exporters body
FIEO demanded government intervention to contain the flow as
it had been making the rupee stronger against the American
greenback, rendering exports incompetent from price angle.
After turning negative following the collapse of the global
financial services icon Lehman Brothers in the middle of
September last year, FIIs inflow into the domestic stock
markets have begun to rise sharply.
Last month, Finance Minster Pranab Mukherjee had said that
investment into the equity markets by foreign investors was
not a matter of concern, but the government would act if it
finds any distortions.
Describing the foreign capital inflows as the success
story of India's recovery, Reserve Bank Deputy Governor Subir
Gokarn on Monday said that the inflow should not be viewed as
a threat at this point of time.
First Published: Tuesday, December 01, 2009, 23:30