Feb 04, 2013, 10.24 AM | Source: PTI
Overseas investors pumped in a staggering Rs 22,000 crore (USD 4 billion) in the Indian stock market in January, the seventh consecutive month of inflows.
This was the seventh straight quarter of net investment by FIIs in the Indian equities market starting July, 2012. Market analysts attributed huge inflows into Indian equities to a slew of measures taken by the government, including the postponement of GAAR implementation by two years to April 1, 2016 and partial decontrol in diesel prices.
Additionally, easing of interest rate by Reserve Bank has also attracted foreign investors. Another major reason for fund inflow was passage of 'fiscal cliff' bill by the US Senate that delays the automatic spending cuts by two months and proposed raising of taxes on individuals earning more than USD 400,000 a year and households making more than USD 450,000. Apart from equities, FIIs have invested Rs 2,947 crore in the debt market in January.
So far in 2013, FIIs pumped in Rs 23,101 crore (USD 4.25 billion) in the Indian equities and poured in Rs 3,639 crore in the debt market. The strong buying by FIIs pushed the benchmark Sensex by 355 points or 1.82 per cent so far this year to settle at 19,781.19 points.
In 2012, FIIs had made net investment of Rs 1.28 lakh crore (USD 24.4 billion) in Indian equities, making it the second best year for the market after a record inflow of Rs 1.33 lakh crore (USD 29 billion) in 2010. As on February 1, the number of registered FIIs in the country stood at 1,761 and total number of sub-accounts were 6,333.