FIIs infuse $10 bn in equity market in 2013 so far

Pumped in $4.57 bn (Rs 24,440 crore) in Feb and $4.05 bn (Rs 22,000 crore) in Jan

Overseas investors have poured in $ 1.4 billion into Indian equities in March, taking the total investment tally to $ 10 billion for the calendar year 2013 so far.

Foreign Institutional Investors (FIIs) infused a net amount of $1.4 billion (about Rs 7,547 crore) in Indian stock market in March so far taking the total inflows to $10 billion (Rs 54,045 crore) in less than three months of 2013.

FIIs had pumped in $4.57 billion (Rs 24,440 crore) in February and $4.05 billion (Rs 22,000 crore) in January.

Market analysts attributed huge inflows into Indian equities to a slew of measures taken by the government, including the postponement of General Anti Avoidance Rule (GAAR) implementation by two years to April 1, 2016 and partial decontrol in diesel prices.

Additionally, easing of interest by Reserve Bank of India (RBI) and subsequent impact of improved liquidity position have further boosted FIIs inflow.

During March 1-22, FIIs were gross buyers of shares worth Rs 57,303 crore, while they sold equities amounting to Rs 49,756 crore, translating into a net investment of Rs 7,547 crore ($ 1.4 billion), as per Sebi data.

Foreign fund houses also infused a staggering Rs 7,373 crore ($ 1.35 million) in the debt market so far this month. This takes the overall net investments by FIIs into debt markets to Rs 14,322 crore ($ 2.65 billion) so far this calendar year.

"FIIs have been infusing money into the Indian market on account of various reform measures taken by the government and change in RBI's monetary policy that has added liquidity to the system. This liquidity will help in growth of the country," Wellindia Executive Director Hemant Mamtani said.

Earlier this month, RBI has slashed repo rates by 25 basis points to 7.5% in its mid-quarter monetary policy review.FIIs bought equities worth $ 24.4 billion in 2012, about $ 5 billion below record purchases two years ago.

As on March 22, the number of registered FIIs in the country stood at 1,757 and total number of sub-accounts was 6,322.