Betting big on the Indian equity markets, foreign fund houses have made a net investment of over Rs 6,700 crore in just four trading session of April this fiscal.
Till April 8, foreign institutional investors (FIIs) are gross buyer of shares worth Rs 20,519.40 crore, while they sold equities worth Rs 13,769.90 crore, resulting in a net investment of Rs 6,749.60 crore or $1.51 billion, as per the data available with the capital markets regulator Sebi.
According to analysts, FIIs have been pumping funds into emerging markets like India because of their strong growth potential and feels that in the coming days too, the foreign fund houses may keep investing in the Indian bourses.
"The FII inflows in April have been strong. This may be because of expectation of good corporate results," SMC Capitals Equity Head Jagannathan Thunuguntla said.
Besides, foreign fund houses were negative on debt market and pulled out Rs 2,940.80 crore or $665.07 million. This takes the overall net investments by FIIs into stocks and bonds to a total of Rs 3,808.80 crore or about $850.63 million.
In January 2011, overseas investors had pulled out Rs 4,813.2 crore from stock market and outflow continued in February too with Rs 4,585.5 crore taking out from equities but the scenario changed in March, when they were net investors of equities worth Rs 6,749.60 crore.
This has taken the gross purchases of equities in the country by FIIs so far this year to over Rs 1.88 lakh crore. After taking into account the outgo of Rs 1.84 lakh crore, overseas investors have made a net investment of Rs 4,248 crore.
