New Delhi: Overseas investors poured in over Rs 7,500 crore (USD 1.2
billion) in the equity market since the beginning of the month amid
renewed optimism about the Indian economy.
Total foreign
investment in the stock market has reached Rs 96,461 crore (USD 17.4
billion) so far in 2013, according to data from the Securities and
Exchange Board of India, the capital market regulator.
Foreign
institutional investors (FIIs) bought equities worth Rs 39,572 crore and
sold Rs 32,045 crore of shares during November 1-22 -- a net inflow of
Rs 7,527 crore.
On November 22, FIIs were net sellers of equity
for the first time since October 3 and sold Rs 40 crore of shares on
renewed uncertainty about the US Federal Reserve tapering its stimulus
programme.
They invested a net Rs 28,700 crore in stocks during the past two months (September-October).
Overseas
investors pulled out Rs 4,569 crore from debt securities so far this
month. They have withdrawn a net Rs 54,723 crore from the debt market
since the beginning of 2013.
FII inflows into the stock markets have been buoyant since September 2013 on the back of continued global liquidity.
Finance
Minister P Chidambaram had said earlier this month that the current
account deficit has been under control, the fiscal deficit target will
be met, export growth is expected to continue and a bumper harvest is
likely after the good monsoon.
Industrial production and trade data released earlier this month gave an impetus to foreign investors.
Industrial
output rose 2 percent in September from a dismal 0.43 percent in
August. India's exports rose 13.47 percent to USD 27.27 billion in
October while imports dipped 14.5 percent, helping to narrow the trade
deficit.
The benchmark 30-stock S&P BSE Sensex closed at a record 21,239.36 on November 3.
Since the end of October, the index has declined 947 points, or 4.47 percent, to 20,217.39 points on Friday.
As of November 22, the number of registered FIIs in the country stood at 1,743 and the total number of sub-accounts at 6,406.
