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FIIs invested Rs 7638 cr in equities during April
BS Markets Bureau in Mumbai |
May 01, 2004 11:59 IST
Foreign institutional investors have invested a record Rs 7,638.20 crore (Rs 76.38 billion) in the Indian equity markets in April, according to the latest data released by the Securities and Exchange Board of India on its web site. This makes FII investments in April the largest ever in a single month.
Twenty four new FIIs have been registered with the Sebi in April, raising their number from 517 on March 31, 2003, to 541 on April 30.
In fact, data shows that FIIs have been net sellers only on two days in April with the largest single day inflow reported on April 1 at Rs 3,490.40 crore (Rs 34.9 billion).
FIIs continue to remain bullish on the India story and the most recent indication of this was on Tuesday when they were net buyers despite the Bombay Stock exchange Sensex falling 213 points on all round selling pressure from other market participants.
Sunil Shah, managing director, HDFC Securities, said, "FII inflows showed an increase in April because of a rising market and a slew of public offerings. In fact, those who could not satisfy their appetite in the primary markets made purchases from the secondary markets. A good crop of corporate results declared in April also attracted buying."
He added that the FIIs are looking forward to a reform-oriented, stable government. FIIs though have been net sellers in the debt market, recording sales of Rs 918.70 crore (Rs 9.18 billion) in April so far, bringing the total FII inflows into the Indian markets to Rs 6719.50 crore (Rs 67.19 billion) in April.
The total FII inflows for 2004 are at Rs 19,706.70 crore (Rs 197.07 billion), bringing the total FII inflows into India at Rs 1,13,809.10 crore (Rs 1,138.09 billion) since inception of this route.
Domestic mutual funds though do not seem to be sharing the same optimism, having been net sellers in the equity markets in April at Rs 291.32 crore (Rs 2.91 billion) till date but at the same time being buyers of Rs 2,282.15 crore (Rs 22.82 billion) in the debt market, clearly showing their preferences in a volatile equity market amid political uncertainty.
Manish Bhatt, head of primary markets and mutual funds at Prabhudas Lilladher, said, "Market players are expecting an interest rate cut of another 25 basis points because of which a lot of fund buying is being seen in the debt market. Also, they are staying away from the volatility in the equity market amid political uncertainty."