FIIs on a roll, inflows surpass $3 billion

Net inflows were $2.8bn between Jan 1-Mar 8 last year.

Foreign institutional investors' (FIIs) net investments in the domestic equity markets, since the beginning of the calendar year, crossed the $3-billion mark.

It touched $3.20 billion (Rs 14,381 crore) on March 8. In comparison, in the same period last year, FIIs had pumped in $2.8 billion (Rs 11,838 crore).

Although the Sensex had a great fall of 217 points yesterday, FIIs injected funds worth$188 million (Rs 832 crore) on that day.

In the current month alone, so far i.e. till March 8, FIIs have put in $702 million (Rs 3,115 crore), while net inflows in February stood at $1693 million (Rs 7,588 crore) and that in January $805 million (Rs 3,678 crore).

FIIs have been net buyers continuously in the last 15 trading sessions, pumping in $1.57 billion (Rs 6,983 crore) from February 16 to March 8. During the period, the Sensex gained 396 points to scale a high of 10508.85, from 10113.18.

The 8 per cent-plus growth of the economy has made India a favourite destination for the foreign investors. In the last one and a half months, as many as 47 new FIIs opened their offices in the country, taking the total tally to 870 till March 8.

New FIIs from the UK, the US, Germany, Singapore, Austria, Luxembourg and Oman have opened offices in India during the last two and a half months.

In January, a total of 10 new FIIs entered the Indian stock markets followed by 28 in February and nine in the first eight days of this month.

CGNU Lifer Assurance, Commercial Union Life Assurance and Arlington Group Asset Management of the UK, Al Ahlia Insurance Company of Oman, Blackrock World Investment Trust from the US and Bayerische Hypo-Und Vereinsbank Aktien Gesellschaft from Germany and Camas Investments Ptea of Singapore are the new FIIs that have entered the domestic stock markets.

FIIs made a record $10.7 billion net inflows in the calendar year 2005, making their highest-ever investment in Indian equities since the stock markets opened up for them in December 1993.

According to data released by the Securities and Exchange Board of India, FIIs bought $8.5 billion in the calendar year 2004. They had bought $6.59 billion equity shares the Indian stock markets in 2003, while $740 million in 2002.