FII inflows hit Rs 1 lakh crore
In what could be a high point in a roller-coaster year that saw the economy rebound from lows, the net investment by FIIs into India in the current fiscal year crossed a milestone Rs 100,000 crore mark on Wednesday — a record figure for a single fiscal year, reports Sandeep Singh.business Updated: Mar 10, 2010 23:06 IST
In what could be a high point in a roller-coaster year that saw the economy rebound from lows, the net investment by foreign institutional investors (FIIs) into India in the current fiscal year crossed a milestone Rs 100,000 crore mark on Wednesday — a record figure for a single fiscal year.
The day closed with an influx figure of Rs 100,533 crore. That topped the earlier record figure of Rs. 53,042 crore in 2007-08.
“Indian and China have shown signs of resilience and quality growth and FIIs have taken a view on that,” said R. Venkataraman, executive director, India Infoline.
While investments by FIIs was strong between April and December 2009, it dropped in the past two months. Funds bounced back as the Union Budget on February 26 brought local cheers, global clouds cleared as European nations moved to bail out crisis-hit Greece and US jobs data showed an uptick.
The FII inflow in March has been very strong and totalled up to Rs 10,243 crore in the seven trading days so far.
“There is lot of money in the two largest economies of US and Japan with little investment options. Hence in the longer term I see the FII investment growing,” said Venkataraman.
In 2008-09, FIIs hit by the global financial crisis pulled out Rs 47,729 crore from the Indian markets.
As India emerges as a high-growth economy surpassed only by China, it is also considered by investors as safe haven on the back of a strong domestic market and a stable financial system.