Foreign investment in the Indian stock markets may cross $ 10 billion-mark by the end of this month as a hefty $ 9.8 billion (Rs 47,674 crore) have already been poured into the bourses by overseas entities so far this year, analysts feel.
"FII inflows in the Indian equity market would continue in the coming days and it may cross $ 10 billion level by September-end," Anand Rathi Financial Services Director & Head of Research Tarun Sisodia.
Foreign institutional investors (FIIs) are the net buyer of shares worth Rs 47,674 crore so far in this year, according to the data available with the market regulator or Securities and Exchange Board of India (SEBI).
The infusion of money by overseas investors in shares is a part of their portfolio management in various emerging markets and India is part of that strategy, Sisodia, who is based in Mumbai, said.
So for in this month, foreign investors have infused over Rs 7,400 crore ($1.5 billion), increasing their total net investment, since FIIs were allowed in India, to over Rs 2.78 lakh crore (65 billion dollars), as per SEBI data.
"FII investment in the local markets may cross $ 10 billion mark by end of this week. As everything is bullish and picture of Indian stock market is very rosy," Delhi-based SMC Global's Vice President Rajesh Jain said.