FIIs invest net Rs 7,500 crore in Indian stocks in November

 
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 They have withdrawn a net Rs 54,723 crore from the debt market since the beginning of 2013.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.

Sensex gains over 223 points to snap three-day losing streak

Mumbai: Snapping its three-day losing streak, the BSE benchmark Sensex recovered over 223 points in early trade Monday on emergence of buying by funds amid a firming trend in other Asian markets.

The 30-share index, which had lost nearly 674 points in the previous three sessions, recovered 223.26 points, or 1.10 percent, to 20,440.65, with stocks of banking, realty, oil and gas and FMCG sectors leading the recovery.

The National Stock Exchange Nifty moved up by 68.75 points, or 1.15 percent, to 6,064.20.

Brokers said emergence of buying by funds and retail investors amid a firming trend in other Asian bourses, after US markets hit another record high on Friday, mainly buoyed the trading sentiment here.

Besides, expectations of a drop in import bill after crude oil prices fell in the overseas markets, following a key deal between world powers and Iran on its controversial nuclear programme, also triggered buying activity, they said.

Stocks of state-run oil marketing companies such as Indian Oil rose 1.99 percent to Rs 204.70. Hindustan Petroleum rose 4.25 percent to Rs 211 and Bharat Petroleum gained 2.68 percent to Rs 341.60.

Reliance Industries shares also gained 1.27 percent to Rs 854.65.

In other Asian markets, Japan's Nikkei index rose by 1.36 percent, while Hong Kong's Hang Seng gained 0.56 percent in early trade today.

The US Dow Jones Industrial Average surged to yet another high by gaining 0.34 percent on Friday.

Cabinet likely to decide on FDI in pharma, housing today

 
New Delhi: With serious concerns being raised from various departments regarding the acquisition of Indian drug firms by global multinational entities, the government is likely to consider reducing the foreign direct investment cap in the pharma sector.

According to reports, the Cabinet is likely to take up the decision Monday to reduce the FDI cap in critical areas of the pharma sector to 49 percent.

Led by DIPP, several departments have raised concern about the continuous acquisition of Indian drug firms by foreign firms.

The Cabinet is also expected to relax FDI norms in the housing sector.

"The Cabinet will review the FDI policy in pharmaceutical and housing tomorrow (Monday)," an official said on Sunday.

With the current FDI cap in pharma sector at 100 percent, the Department of Industrial Policy and Promotion (DIPP) has proposed to reduce it to 49 percent in the "rare or critical pharma verticals".

Cairn India to spend $1 billion on buyback: Report

Bangalore: Cairn India Ltd, oil and gas unit of London-listed Vedanta Resources, is set to spend about USD 1 billion to buy back shares, Bloomberg reported on Sunday citing two people familiar with the matter.

The share purchase will include buying back Cairn Energy Plc's 10.3 percent stake in the company, Bloomberg said citing one of the sources.

Mining conglomerate Vedanta, controlled by billionaire Anil Agarwal, acquired a majority stake in Cairn India for almost USD 9 billion in 2011. Since then, Cairn India played a pivotal role in boosting revenue and production even as Vedanta's mining business in India faced regulatory hurdles and mining restrictions.

The plan may help Sesa Sterlite Ltd and Agarwal's other subsidiaries increase ownership in Cairn India to more than 65 percent from 59 percent, the source told Bloomberg.

Cairn India's board is expected to meet on November 26 to consider a buyback.

Vedanta and Cairn Energy could not immediately be reached for a comment outside regular business hours.

Earlier this month, Vedanta said Cairn India was on track to hit its 2014 production target, previously put at 225,000 barrels of oil equivalent per day.

Sensex recovers 109 points in early trade

Mumbai: The BSE benchmark Sensex recovered by almost 109 points in early trade on Friday on emergence of buying by funds and retail investors in realty, capital goods, banking and metal sector stocks.

The 30-share index, which had lost 661.77 points in the previous two sessions, rose by 108.91 points, or 0.54 percent, to trade at 20,337.96.

The National Stock Exchange index Nifty gained 29.95 points, or 0.50 percent, to trade at 6,029.00.

Brokers said fresh buying by funds, tracking a firming trend on other Asian bourses after the US Dow Jones closed above the 16,000 level for the first time on the back of a slew of upbeat economic data, influenced the trading sentiments here.

Among other Asian markets, Hong Kong's Hang Seng index was up 0.52 percent, while Japan's Nikkei gained 1.23 percent in early trade today.

The US Dow Jones Industrial Average ended at a new record high by gaining 0.69 percent yesterday.