Record overseas buying of Indian stocks is unlikely to reverse, as an accelerating economy and share sales by companies, including the world’s largest coal producer, lure investors, the capital markets regulator has said.
“We have no reason to believe, at least if we go by historical evidence, that there will be a sudden reversal,” Securities and Exchange Board of India Chairman C B Bhave, 60, said.
For overseas investors “it’s important that there is supply of enough paper,” otherwise asset prices might surge, he said.
International investors have bought $21.7 billion (Rs 95,900 crore) of Indian equities this year, driving the Bombay Stock Exchange’s Sensitive Index to near the highest level ever. Coal India Ltd’s share sale this month will add to the record Rs 79,400 crore ($17.9 billion) raised by the nation’s companies this year. The inflows have helped the rupee gain 4.5 per cent against the dollar in September, the most since May 2009.
