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Rediff.com  » Business » FII equity inflows hit 10-month low of Rs 2,100 cr in Dec

FII equity inflows hit 10-month low of Rs 2,100 cr in Dec

Source: PTI
January 04, 2015 12:38 IST
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According to latest data, FIIs have made a net investment of Rs 2,132 crore (Rs 21.32 billion) in the stock markets in December.

DollarsOverseas investors pumped in a little over Rs 2,100 crore (Rs 21 billion) in the Indian equity markets in December, making it the lowest investment in 10 months, primarily on account of profit booking.

The net investment by foreign institutional investors for the entire 2014 was more than Rs 98,000 crore (Rs 980 billion).

These investors got re-christened as Foreign Portfolio Investors last year under a new regulatory regime that promises to make it easier for them to invest in India.

According to latest data, FIIs have made a net investment of Rs 2,132 crore (Rs 21.32 billion) in the stock markets in December.

This was the lowest investment by FIIs in a single month since last February, when they had pumped in a net amount of Rs 1,404 crore (Rs 14.04 billion).

Market analysts attributed the low inflow to profit booking, even though the central government took up the ordinance route to raise the overseas investment ceiling in insurance sector.

However, experts are of the view that there is nothing to worry and FIIs will be back to the Indian stocks markets this month.

Apart from equities, foreign investors have infused a net of Rs 11,836 crore (Rs 118.36 billion) in debt markets last month.

In 2014, the net investment by overseas investors into the equities was Rs 98,150 crore (Rs 981.5 billion), while in the debt markets it was Rs 1.6 lakh crore (Rs 1.6 trillion), aggregating to Rs 2.58 lakh crore (Rs 2.58 trillion).

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