R100,000 cr: FII inflows cross magic mark
Foreign institutional investors (FIIs) have pumped in R100,000 crore ($22 billion) in a calendar year for the first time.business Updated: Oct 13, 2010 22:51 IST
Foreign institutional investors (FIIs) have pumped in R100,000 crore ($22 billion) in a calendar year for the first time.
The mark, attained on Wednesday, indicates the FIIs’ optimism in the India growth story.
Net FII inflows were R700 crore on Wednesday. For the month of October (so far) it is R16,214 crore — taking investments so far in 2010 to R100,574 crore. And there are two months to go yet, in this calendar year.
Market experts see the funds flowing for some time, but suggest caution with optimism.
“I think things are happening too fast and from all corners and when that happens risk of the reverse flows happening in case of a global problem always remains,” said S. Ramesh, chief operating officer, Kotak Mahindra Investment Banking.
The FII interest has pushed the markets significantly. The Sensex has risen by 15.1 per cent or 2,717 points since September 1, 2010. But with the Coal India IPO round the corner — FIIs are strongly interested in it — experts feel their presence in the secondary market may come down over the next week.