FIIs pour in Rs 2,600 cr in May

Total FIIs near $12 bn in 2013 despite political and economic worries

Overseas investors have pumped in a staggering Rs 2,600 crore ($483 million) in the Indian stock market during the first two trading sessions of the month amid political and economic worries.

With this, the total foreign investor investments in the country's equity market has reached Rs 63,643 crore ($11.8 billion) since the beginning of 2013.

During May 2-3, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 8,475 crore, while they sold equities amounting to Rs 5,869 crore, translating into a net inflow of Rs 2,606 crore ($483 million), according to the data available with market regulator Sebi.

Market experts said FII inflows in the Indian equities slowed last month because of a slew of factors such as profit- booking, concerns over high current account deficit (CAD) and political uncertainty.

FIIs had infused Rs 5,414 crore (about $1 billion) in the Indian equity market in April, the lowest in 16-months.

"We have seen FIIs pumping in funds in the Indian equity market during the month (April), but they are concerned about various economic factors such as CAD touching a record high and political uncertainty," Geojit BNP Paribas Financial Services Ltd Head (Research) Alex Mathews said.

Apart from equity, FIIs have also poured in Rs 2,929 crore ($542 million) in the debt market during the month taking the total investment to Rs 21,007 crore ($39 billion) in the segment so far this year.

As on May 3, the number of registered FIIs in the country stood at 1,769 and total number of sub-accounts were at 6,383 during the same period.