FIIs set new record
Inflows from foreign institutional investors hit a new all-time monthly high on Monday, and with it a new record for annual inflows, taking the total inflows in the calendar year 2010 to R1,11,546 crore. HT reports. Net FII inflowsbusiness Updated: Oct 25, 2010 22:13 IST
Inflows from foreign institutional investors (FIIs) hit a new all-time monthly high on Monday, and with it a new record for annual inflows.
The FIIs have pumped in $6.1 billion (R27.186 crore) this month, taking the total inflows in the calendar year 2010 to $24.5 billion (R1,11,546 crore).
The previous high in rupee terms stood at R24,978 crore in September this year and in US dollar terms it was the $5.9 billion record set in July 2007.
There was apparently no let-up in the inflows despite the end of the initial public offer of shares by Coal India Ltd.
FIIs put in R1,379 crore on Monday.
Market experts see the FII inflows to remain strong, as credit availability in global markets encourage the flows.
“Structurally I think the inflows will continue as the India story is strong and attractive and internationally there is less opportunity,” said Vikas Khemani, co-head of institutional equities at Edelweiss Capital. “Also easy monetary policy in the developed economies is leading to a lot of liquidity.”
But the money is considered to be hot — it can go out on bad news with the same ease with which it came in on good news.
FII power has fuelled a bull run in the Indian markets on the back of a worldwide stock surge and the trend was sustained on Monday .
The 30-share Sensex at the Bombay Stock Exchange rose by 287 points in the initial trading hours before closing the day at 20,303 with a gain of 137 points or 0.7 per cent. The broader Nifty at the National Stock Exchange rose 40 points to close at 6,105.
Profit booking followed after the initial gains in the Indian market.
The biggest gainers belonged to companies in the consumer durables and automobiles as the two sectoral indices rose by 2.4 and 1.2 per cent respectively during the day.
Among the Sensex companies ACC, Hindalco and Tata Motors were the top gainers and their share prices rose by 4.3 per cent, 4 per cent and 2.8 per cent, respectively.