Foreign investors buy net Rs 538 cr of Indian stocks

Overseas investors bought a net Rs 538 crore ($120 million) of Indian stocks on June 3, taking their total investments in equities this year to Rs 738 crore, the nation’s market regulator said.

Foreigners purchased Rs 1,980 crore of shares and sold Rs 1,450 crore, the Securities and Exchange Board of India said on Monday. They bought Rs 828 crore of bonds, taking total debt purchases this year to Rs 14,770 crore.

Overseas funds bought a record Rs 1.33 lakh crore of shares in 2010, helping fuel a 17 per cent rally in the Sensex, the best performer among the world’s 10 biggest equity markets last year. The Sensex has fallen 10.2 per cent this year.

The previous record was in 2009 when flows reached Rs 83,420 crore, sparking the biggest advance in 18 years. Funds pulled out a record Rs 53,000 crore from stocks in 2008, setting off the worst annual slump. Foreign funds have placed Rs 4.478 lakh crore in equities and Rs 93,440 crore in bonds since they were allowed into the country in 1993.

The regulator provides data on shares bought and sold by large investors, including trades in the primary and secondary markets, with a delay of at least a day.