FIIs make a comeback in August

Foreign Institutional Investors (FIIs) are back in action "" both in terms of new funds coming to India, and their investments into the stock markets.

While FIIs pumped in $1 billion worth of investments in August "" their biggest single-month inflow in the last five months "" the number of new FIIs registered with Sebi during the month, 22, was also the highest in the last four months.

The total number of FIIs in India now stands at 956, compared with 823 at the beginning of this calendar year.

Six new FIIs from the UK, four from the US, three from Japan, two from Ireland, and one each from Canada, Finland, France, Hong Kong, the Philippines, Singapore, and South Korea registered with Sebi in August.

The bellwether BSE-30 Sensex gained by 947.39 points, or about 9 per cent, during the month to touch 11,699.05. Today, it closed at 11,778.02 points, up by about 79 points from yesterday.

"FIIs are the main driver for the Indian stock market. They will continue to have a major influence on our market," said a dealer with a local broking firm.

The fund inflow and new FII registrations indicated the return of foreign funds to the domestic equity market after a brief lull from April to July, he added.

In May, FIIs pulled out $1.6 billion (Rs 7,354.20 crore) from the equity market, resulting in a meltdown of stock prices during that period.