Foreign institutional investors have pumped in close to Rs 7,000 crore of net investments into the country in the first four months of 2000. This is more than the net inflow of Rs 6,696.8 crore in the whole of 1999.
FIIs brought in over Rs 2,500 crore worth of net investments in April alone, even as the market continued to brace at lower levels through the month.
Figures collated by the Securities and Exchange Board of India indicate that FIIs have been net buyers in each of the past four months, taking their net cumulative exposure to the Indian equity markets this year to Rs 6,968.6 crore.
The record for FII inflows in a single year was set in 1996, when net investments touched Rs 10,803.60 crore.
Foreign institutional investors were slow in kicking off the year 2000, making net investments of just Rs 151.2 crore in January. In February, this rose to Rs 2,784.50 crore, followed by Rs 1,064.40 crore in March. If the April figures are any indicator, FII inflows may set new records this year.
Analysts said the investment strategy of FIIs indicates that they are using every dip in the local bourses to accumulate good information technology, communications and entertainment stocks. This strategy could pay off handsomely when the local markets stage a recovery, they said.
