Bullish foreign fund houses have invested over $1.5 billion (about Rs. 7,100 crore) in the Indian equity market in the first five trading sessions of this month.Till April 11, foreign institutional investors were gross buyers of shares worth Rs. 23,202.20 crore (Rs. 232.022 billion), while they sold equities amounting to Rs. 16,095.80 crore (Rs. 160.958 billion), resulting in a net investment of Rs. 7,106.50 crore (Rs. 71.065 billion), or $1.6 billion, as per the data available with the capital markets regulator Sebi.
According to analysts, FIIs have been pumping funds into India because of its strong growth potential and feels that in the coming days too, the foreign fund houses are likely to infuse money in the Indian bourses.
"The FII continued to witness inflows in April after having a good supply of money in the last month. One of the reasons could be the expectation of good corporate earnings," said
SMC Capitals Equity Head Jagannathan Thunuguntla.
Besides, foreign fund houses were negative on debt market and pulled out Rs. 1,227.00 crore (Rs. 12.27 billion) or $275.94 million.
This takes the overall net investments by FIIs into stocks and bonds to a total of Rs. 5,879.50 crore (Rs. 58.795 billion) or about $1.32 billion.
In January 2011, overseas investors had pulled out Rs. 4,813.2 crore (Rs. 48.132 billion) from stock market.
The outflow continued in February too with Rs. 4,585.5 crore (Rs. 45.855 billion) being taken out from equities but the scenario changed in March, when they were net investors of equities worth Rs. 6,749.60 crore (Rs. 67.496 billion).
This has taken the gross purchases of equities in the country by FIIs so far this year to over Rs. 1.91 lakh crore.
After taking into account the outgo of Rs. 1.86 lakh crore, overseas investors have made a net investment of Rs. 4,605.60 crore (Rs. 46.056 billion).
