Net Fii Purchases In Calendar Year 1996 Up 183 Per Cent

Net purchases by foreign institutional investors (FII) during the calendar year 1996 increased by 183 per cent to Rs 10,744 crore compared with the net purchases of Rs 3,798 crore in 1995.

The net purchases of 1996 shows a remarkable 74 per cent increase over the net purchases of Rs 6,167 crore in 1994. Thus, FIIs, taking advantage of bear markets during the greater part of 1996, made sizeable investment in 1996.

The net purchases FII aggregated to Rs 20,709 crore at the end of December 1996. The aggregate purchases by the FII during the last three years stood at Rs 30,805 crore. The sales by the FII during the comparable period aggregated to Rs 10,096 crore.

 

During 1996 the FII purchases aggregated at Rs 15,668 crore. As against this , sales by the FII was aggregate at Rs 4,924 crore. The purchases and sales pattern during 1996 shows that the FII have made sizeable purchases at the bottom of the market and sold heavily when the market picked up. The monthly purchases by FII during the first seven months of calendar year 1996 aggregated Rs 10,828 crore while net sales during the same period aggregated to Rs 2,356 crore.

In January 1996, when the BSE Sensex averaged at 2979.31, the FII purchases aggregated Rs 1186 crore. As against this, the FII sales aggregated to Rs 189 crore.

In February, the FII stepped up its purchases to Rs 1,838 crore. The aggregate sales were pegged at Rs 272 crore.

The net purchases of FII from February 1996 to July 1996 remained above Rs 1000 crore. Net purchases in February were higher at Rs 1566 crore. Net purchases in March stood at Rs 1,074 crore, April Rs 1,484 crore, May 1,030 crore, June 1,228 crore and July 1,093 crore.