Domestic equity markets are fast integrating themselves with the major global peers, a trend that helped in larger capital inflows from overseas investors during the current fiscal, the Economic Survey said today.
"The movement in equity indices in the Indian capital market was in line with trends in major international equity markets, a sign of increasing integration," the survey tabled in Parliament said.
Moreover, the regulatory measures initiated during the year were clearly in the direction of introducing greater transparency, protecting investors' interest and improving efficiency in the working of the Indian equity markets, while also ensuring soundness and stability.
The equity markets, started on a subdued note in 2009 and remained rangebound during April-March last year, but after that it showed signs of recovery.
"With (the) revival of foreign institutional investors' (FIIs) interest in emerging market economies, including India, the equity markets gained strength during May-July 2009," it said.
FIIs investment in equity market rose to Rs 83,424 crore in 2009 compared to withdrawals of Rs 52,987 crore in 2008.
Moreover, the total net investment by FIIs in equity and debt markets taken together, increased considerably to Rs 87,987 crore in 2009 compared to a net decline of Rs 41,216 crore in 2008.
