FII flows remain strong in 2010

Foreign Institutional Investors (FIIs) net investment in Indian equity markets has crossed $75 billion mark.

Data released by the market regulator, Securities and Exchange Board of India (SEBI), shows that the cumulative FII net inflow in equity market has reached $75.12 billion (Rs 325,216 crore) on March 11, from $72.62 billion (Rs 313,838 crore) at the beginning of current calendar year 2010.

So far in calendar year 2010, FIIs have made net investments of $2.5 billion (Rs 11,378 crore), of which $2.3 billion (Rs 10,662 crore) net flow made in last eight trading days since Union Budget 2010 held on February 26, reflecting the strong economic fundamentals of the country, as well as confidence of the foreign investors in the growth and stability of the Indian market.

“Emerging markets, which have been unscathed from the US credit crisis and were quick to bounce back from the aftermath of the same have at forefront of the global economic growth, have seen significant fund inflows. In such a backdrop the Indian economy, which is the second fastest economy, is unlikely to remain out of the radar of the global investors, thus witnessing significant fund flows” said Sarabjit Kour Nangra, Vice President - Research of Angle Broking

FIIs have accounted almost 14% market share of the total market capitalization of the Bombay Stock Exchange (BSE), and hold equity shares worth of Rs 822,497 crore in more than 1,000 Indian companies.

FIIs had made 80% or $59.66 billion of the total net investments, in last seven years since 2003. The Bombay Stock Exchange (BSE), Sensex has appreciated 408% during the period to close at 17,167.96 points.

The number of FIIs had also increased during the period, from negligible in 1992, the year foreign investors allowed to enter in Indian equity market, to 517 in 2003 to 1,708 as on March 2010.

“The economic growth of India , which is on an uptrend is likely to further hasten in FY2011, thus barring any event like the US Credit crisis, the FII inflows to remain robust, as the global investors would chase the high growth economy like India”.