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FII inflows into equity top $3 B in 3 months
By agencies
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Friday, 10 March 2006, 20:30 IST
MUMBAI: Notwithstanding their heavy selling in the derivatives segment, foreign institutional investors (FIIs) have pumped in over $3 billion in the current calendar year till date in the cash market.
As on March 8, 2006, FII net inflows in Indian equities stood at $ 3.086 billion. In fact, FIIs crossed the $3 billion mark in 2005 on March 11, which suggests that the aggression in their buying is still on.
The FIIs have poured in the last $one billion in just nine trading sessions as their investment crossed the $2 billion mark on February 23, 2006. The total FII inflow on that day for calendar 2006 was pegged at $ 2.1 billion. Interestingly, in CY06, FIIs remained net buyers on 38 trading sessions, and sold equities only on 8 occasions.
With the long-term India story being accepted by most of the FIIs, investors with deep pockets and long holding capacity will come to India and thus Indias dependence on hot money, the likes of hedge funds and funds routed through participatory notes (PNs) will reduce drastically, he said. Besides, he expects India to attract more long term foreign fund flows.