FIIs pump $1.61 bn into Indian equities in April

Betting big on the Indian market, foreign fund houses invested $1.61 billion (about Rs 7,213 crore) in Indian equities in the month of April.

Foreign institutional investors (FIIs) were gross buyers of shares worth Rs 54,174.40 crore, while they sold equities amounting to Rs 46,961.10 crore, translating into a net investment of Rs 7,213.30 crore, or $1.61 billion, as per data available with capital markets regulator Sebi.

According to analysts, FIIs have been pumping funds into India because of its strong growth potential. They feel that in the coming days too, foreign fund houses are likely to infuse money in the Indian bourses.

"The FII (segment) has been witnessing inflows in the last two months in India because they (investors) don't have many choices left. Besides, they are taking advantage of the country's growth potential," CNI Research CMD Kishore P Ostwal said.

In contrast, foreign fund houses were negative on the debt market and pulled out Rs 17.20 crore. This takes the overall net investment by FIIs into stocks and bonds to a total of Rs 7,196.10 crore.

In January, 2011, overseas investors had pulled out Rs 4,813.2 crore from the stock market. The outflows continued in February too, with Rs 4,585.5 crore being taken out from equities. However, the scenario changed in March, when they were net investors in equities worth Rs 6,749.60 crore.

This has taken the gross purchases of equities in the country by FIIs so far this year to over Rs 2.22 lakh crore. After taking into account the outgo of Rs 2.17 lakh crore, overseas investors have made a net investment of Rs 4,712.60 crore.