After poor inflows during the first half of April, the foreign institutional investors presence in the capital markets increased between April 16-28, following the easing of political tensions. While a meagre $1.5 million trickled in between April 1-15, the figure rose to $104.5 million in the next 13 days. According to Sebi figures, FIIs bought shares worth Rs 1032.5 crore and sold worth Rs 652.4 crore, taking the net inflow to Rs 380.1 crore.
However, market sources say that in the last two days of April, FIIs have bought heavily in the market and the figure could be above $150 million.
According to the statistics of the Bombay Stock Exchange, about $7.2 million has been invested in just two trading sessions on April 29-30.
The net purchases on April 29 stood at Rs 18 crore and on April 30 at Rs 8 crore. The National Stock Exchange does not announce FII investment figures separately. This makes a net FII inflow of $113.2 million.
While the net inflow of funds from FIIs stood at $163.4 million in March, they stood at $88.8 million in February and $89.3 million in January. IndSec Broking CEO Nandkishore Gupta says: Investment decisions by FIIs are deferred in case of an uncertainty on the political front. However, the sudden purchases made by FIIs towards the end of April reiterate that FIIs have faith in the policy making and not the politicians. When the government fell, many of our clients expressed displeasure. They are surprised with the recovery.
A source at a leading foreign brokerage: Some FIIs have been booking profits. These are the ones who had set up shops earlier. FII allocations will not change drastically as Indias credentials have not changed dramatically. The market is witnessing a small trickle from US funds. Nobody is bullish that the market will run up from here.
