Cumulative Fii Inflows Top $8bn, Its Over $300m In June

Net investments by foreign institutional investors in June has clocked a little over $300 million, indicating a sharp spurt in FII investments in Indian stockmarkets during the month.

The surge in FII flows has also resulted in cumulative net investments by FIIs crossing the $8 billion mark.

The June figure is the highest recorded on the net investments side since the beginning of the current fiscal. Highly placed Sebi sources told Business Standard that the net investments this month had just crossed the $300 million mark and the cumulative figure stood at $8.2 billion.

The net investments figure of June is in sharp contrast to both April and May, when the investments were dismal, recording $148.5 million in April and $203 million in May.

With the stockmarkets moving up sharply once again, it is now evident that FII flows would be on the increase.

``Traditionally, the period April to June is the time when FII flows increase'', a Sebi official said yesterday, explaining the rise in investments.

FIIs have been buying heavily over the past few weeks on the Bombay and National stock exchanges, which has manifested itself in the Sensex moving north.

On June 13, the Sensex crossed the 4000-mark propelled by sustained buying support, and thereafter, FIIs have been pumping in buy orders on a regular basis, pushing indices upward.

The discounting of political uncertainties by the market and the smoothening of rules for the FIIs by the Securities and Exchange Board of India has also resulted in the FIIs adopting a bullish view on the Indian markets of late.

Sebi has quickened the pace of clearance for FII registrations and has thrashed out a number of issues with them pertaining to settlement and trading problems on Indian stock exchanges.

Yasuda Trust Bank, a mega Japanese investment institution has also enrolled into the FII fold of late, prompting the view that other major Japanese institutions may also be on their way into India.