FIIs bought stocks worth $1 bn in June
Foreign funds were net buyers at the Indian equities markets to the tune of $1.014 billion in June, according to data available with the capital markets regulator, Securities and Exchange Board of India.business Updated: Jul 03, 2011 15:18 IST
Foreign funds were net buyers at the Indian equities markets to the tune of $1.014 billion in June, according to data available with the capital markets regulator.
Foreign institutional investors (FIIs) picked up their buying rate in the last few days of trading in June, when the Indian equities markets saw a rally. The Sensex infact added close to 1,300 points from June 22 to June 30.
The last four trading days alone saw FIIs buying over $1 billion in stocks, according to data available with the Securities and Exchange Board of India.
FII buying also helped the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) post net gains in June, moving up 342.59 points or 1.85% to 18,8445.87 points as on June 30.
FII participation has improved after a slowdown in food inflation figures and an increase in diesel and kerosene prices by the government -- a signal that some important reforms and legistlations would be pushed in the coming monsoon session of parliament.
For 2011, FIIs were net buyers worth $631.7 million.
Leading brokerages say the next few weeks could see stocks rallying again and if that happens FII participation in Indian equities can improve dramatically.
Foreign funds had been instrumental in the Indian markets rally in 2010, buying in $29.36 billion worth of stocks. This year, they have been a bit hesitant and their net buying till June 30 stood at $631.7 million.