Thaindian News

Mumbai, Oct 9 (IANS) Though benchmark indices of Indian equities dipped after a five week rally, the flow of foreign money into the stock markets continued unhindered with total inflows crossing the $3 billion mark within six trading days of October.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors have brought in about $3.04 billion till Oct 8, with over $1 billion coming on the first day of the month.

Till date, FII inflows in 2010, have crossed $21.4 billion, fuelling to a large extent an over 15.3 percent rally by the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange, which ended Friday at 20,250.26 points.

The Sensex had closed Dec 31 at 17,464.81 points.

The inflows have turned this into a dream market run with the Sensex poised to break its all time high of over 21,000 points achieved in January 2008.

“With so much liquidity around and FII inflows continuing unabated, this rally will go on for some more time,” said Jagannadham Thunuguntla, equity strategist, SMC Global Securities Ltd.

“Previous highs will be be surpassed sooner than later,” he added.

FIIs had pumped in a record $17.45 billion into the equities market in 2009, but started exiting in early 2010. In January, they were net sellers to the tune of $94.48 million.

But from February, the scenario changed with foreign funds buying scrips worth $269 million in the month. In March, it was over $4.3 billion and in April the net buys were over $2 billion.

May, however saw a huge sell-out, with FIIs dumping stocks worth $2.1 billion.

The buying has been fairly consistent since, with FIIs lapping up stocks worth $2.27 billion in June, $3.5 billion in July and $2.4 billion in August.