FIIs infuse $11 billion in equity market in 2013 so far

FII inflows have slowed because of profit-booking, concerns over high CAD and political uncertainty

Overseas investors pumped $823 million into the stock markets in the month of April, taking the total investment tally to over $11 billion in 2013 so far.

Foreign institutional investors (FIIs) infused a net amount of $823 million (about Rs 4,450 crore) in Indian stock market in March taking the total inflows to $11.2 billion (Rs 60,072 crore) in less than four months of 2013 so far.

FIIs had pumped in $1.2 billion (Rs 6,532 crore) during March, $4.57 billion (Rs 24,440 crore) in February and $4.05 billion (Rs 22,000 crore) in January.

Market experts said FII inflows in the Indian equities have slowed during April because of a slew of factors such as profit-booking, concerns over high current account deficit (CAD) and political uncertainty.

"We have seen FIIs pumping in funds in the Indian equity market during the month, but they are concerned about various economic factors such as CAD touching a record high and political uncertainty," Geojit BNP Paribas Financial Services Ltd Head (Research) Alex Mathews said.

During April 2-26, FIIs were gross buyers of shares worth Rs 54,790 crore, while they sold equities amounting to Rs 50,340 crore, translating into a net investment of Rs 4,450 crore ($823 million), as per Sebi data.

Foreign fund houses also infused Rs 1,586 crore ($302 million) in the debt market so far this month. This takes the overall net investments by FIIs into debt markets to Rs 14,330 crore ($2.66 billion) in the current calendar year so far.

FIIs bought equities worth $24.4 billion in 2012, about $5 billion below record purchases two years ago.

As on April 26, the number of registered FIIs in the country stood at 1,766 and total number of sub-accounts were 6,372.