FIIs put in record money in equity mkt

Mutual funds industry, too, saw an upbeat year, signalling return of investors to financial markets.

Foreign institutional investors (FIIs) made a record investment in the Indian equity market in 2009, surpassing the 2007 inflows, says Economic Survey 2009-10. Even assets under management of the mutual funds industry touched a record high, indicating revival of investor interest in the financial markets.

Net FII investment in the equity market was at Rs 83,424 crore in 2009, compared to net inflow of Rs 71,486 crore in 2007 and net outflow of Rs 52,987 crore in 2008, the Survey says. Even the number of FIIs’ registration was the highest at 1,706, compared to 1,594 in 2008. However, net FII investment in the debt market declined to Rs 4,563 crore, from Rs 11,772 crore in 2008.

Record inflow in the equity market also has had an impact on the stock market with the NSE Nifty index rising by 76 per cent during the year, compared to fall of 52 per cent in 2008, the Survey says. Overall market capitalisation of stocks in 2009 at Rs 33,14,447 crore could not touch the peak of Rs 35,22,527 crore in 2007.

In the mutual funds industry, assets under management at Rs 6,65,146 crore surpassed the high of Rs 5,49,936 crore in 2007. Assets under management in 2008 were at Rs 4,13,365 crore. The share of income and debt oriented schemes was 54.2 per cent (47.7 per cent in 2008), for equity schemes it was 26.3 per cent (23.9 per cent).