Foreign funds investment crosses $3-bn mark

May 21st, 2009 - 6:17 pm ICT by IANS  

Mumbai, May 21 (IANS) Foreign inflow of money into Indian equity markets has crossed the $3-billion mark, with as much as $2 billion coming in the last five trading sessions, data with the market regulator showed.
Securities and Exchange Board of India (SEBI) data showed foreign funds infused about $3.15 billion ($3,153.9 million) till May 21.

The last five trading sessions starting May 14 brought in over $2.03 billion ($2,033.9 million) with the biggest infusion made May 20 ($1,062.3 million) and May 14 ($828 million).

When markets went into a frenzy Monday with two key indices moving up 17 percent each, foreign institutional investors (FIIs) bought $201.9 million during the couple of minutes when trading was possible.

Markets had pulled down shutters around noon Monday following the key indices breaching the upper circuit twice.

“Confidence among foreign investors seems to be returning but what is important to note is that there are not many options left for foreign funds to invest,” said SMC Capitals equity head Jagannadham Thunuguntla.

“But the absorption capacity of Indian markets is a concern, relatively not-so-huge infusions are resulting in big rallies,” added Thunuguntla.

FIIs had disposed of shares worth $11.83 billion last fiscal, turning net sellers for the first time since 1998-99, as per SEBI data.

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |