FIIs invest $387 mn in stock markets last week

Foreign investors pumped in $387 million (about Rs 1,982 crore) in the Indian stock markets last week, taking the year-to-date total to a massive $8,992.90 million (Rs 44,686.40 crore) this year.

During March 19-22, FIIs were gross buyers of shares worth Rs 3,487.50 crore, while they sold equities amounting to Rs 2,835.80 crore, translating into a net investment of Rs 651.70 crore, according to data available with market regulator Sebi.

Foreign institutional investors (FIIs) have infused a net amount of $1,828.02 million (about Rs 9,116.80 crore) during March, taking the total for 2012 so far to $8,992.90 billion in Indian stocks.

So far this year the foreign fund houses have infused $4,566.30 million in debt market (about Rs 23,366.30 crore).

The strong surge in FII inflows has helped boost the equity market this year as the stock exchange barometer index Sensex has gained 12.33% so far this year.

The surge in the 30-share benchmark index is despite the fact that there was a fall of about 3.25% in January.

Going forward FII fund flows are likely to remain bullish, believe marketmen.

"Fund flows are still positive and the way the quantitative easing has been done inflows to emerging markets like India are likely to remain strong," Ashika Stock Brokers Research head Paras Bothra said.

Commenting on the effect of Budget 2012-13 on FII inflows, he added, "Budget was a complete wash-out and in a global landscape, budget does not hold that much importance at present."

The Sensex closed at 17,361.74 on March 23.

FIIs had mostly stayed away from Indian equities in the year 2011. They flocked towards the debt markets last year with a net investments of Rs 20,293 crore, while pulling out Rs 2,812 crore from equities.