FII inflows cross $8 bn

The net inflows of foreign institutional investors (FIIs) have crossed the $8 billion mark in the current calendar (Monday) to touch $8.45 billion, up from $7.99 billion recorded in 2006.

However, the FIIs' activities on the bourses seem to be lukewarm. The FIIs' trading data across the BSE and the NSE, collated on the basis of trades executed, show a net inflow of Rs 4,676 crore so far in the current calendar year.

This means a large chunk of inflows came through public offers and the conversion of foreign currency convertible debentures (FCCBs) to the equity market.

The data culled from the basis of allocations show that the FIIs have purchased shares worth Rs 9,900 crore in just three public offers. They were allotted shares worth Rs 1,067 crore of Idea Cellular, Rs 5,300 crore of DLF and Rs 3,534 crore of ICICI Bank.

In terms of the rupee, the net investment of the FIIs is still lower by Rs 881.90 crore. In other words, the FII inflows stand at Rs 35,659 crore so far in the current calendar year compared with Rs 36,541 crore in 2006.

The FIIs had made $10.7 billion worth of investment (Rs 47,181 crore) in 2005. Till date, the FIIs have made net investments of $57.54 billion since their entry into the Indian stock markets in December 1993.According to data available with the Securities and Exchange Board of India (SEBI), the net investments of Rs 16,728 crore ($4102 million) by the FIIs in July 2007, is the highest ever single month net inflow by them in the Indian stock markets.

The net inflow in July accounted for 49 per cent of the total investments made by the FIIs so far in 2007. The number of FIIs registered in India has crossed the 1,000 mark, with 1,059 foreign entities opening their offices in the country in the last 14 years.

In the last two-and-a-half years as many as 422 FIIs have registered with the Sebi, and in the current year, 66 new FIIs have open their shops in India so far.