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FPIs infuse Rs 1.22 trillion in securities: Centre

Investments in Indian securities (equity and debt) made by foreign institutional investors (FIIs)/FPIs in 2013 was Rs 62,288 crore, Minister of State for Finance Nirmala Sitharaman said in a written reply in the Lok Sabha. FIIs had invested over Rs 1.63 lakh crore in 2012 and Rs 39,353 crore in 2011.

She said the government, in consultation with RBI and Sebi, has made concerted efforts to encourage capital inflows, which include enhancement of FII debt limit from time to time, replacement of existing FII scheme with FPI scheme with effect from June 1.

FPIs encompasses all FIIs, their sub-accounts and qualified foreign investors (QFI) under a new regime that comes into force on 1 June. The new regime divides FPIs into three categories as per their risk profile and the KYC (know your client) requirements and other registration procedures would be simpler.

She said the prevailing financial market conditions and anticipated future returns of the proposed investment and liquidity as well as volatility in markets are among the factors that influence FII/FPI investment decisions.

Meanwhile, equity benchmarks Sensex and Nifty hit new life-time highs on Friday but retreated on profit-booking in bluechips, including ICICI Bank, Wipro and Tata Motors, to log their first drop in nine sessions.

The BSE Sensex ended down 145.10 points, or 0.55 per cent, to end at 26,126.75 after surging to 26,300.17 intra day. On Thursday, the 30-share bluechip benchmark had ended at its all-time closing high of 26,271.85 and had also hit intra-day high of 26,292.66.

The NSE Nifty in early trade hit record 7,840.9 but ended below the key 7,800-mark to close at 7,790.45, down 40.15 points or 0.51 per cent. Its previous all-time high of 7,835.65 was hit on Thursday.

Marked losses in counters like RIL, SBI, HDFC Bank and Infosys also weighed on the market sentiment. Selling was seen mostly across-the-board as 10 out of 12 BSE sectoral indices closed in the red while only shares from healthcare and FMCG segments logged gains on defensive buying.

‘The Indian markets saw a day of decline after running up rapidly in the past few sessions,’ said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.

The mood seems to be cautious ahead of the expiry of Indian derivatives contract on 31 July, traders said, adding that persisting fears about a spike in oil price on Middle East and Ukraine violence continues to spook investors. Both the indices had gained about 5 per cent in the previous eight sessions, their longest in recent times. The Sensex had gained 1,264.87 points while Nifty 376.45 points in this period as overseas money chased encouraging corporate earnings.

Receding fears about Monsoon, uptick in macroeconomic data and the government’s reform push also contributed to the stupendous rally, said market analysts. Foreign Portfolio Investors (FPIs) picked up shares worth a net Rs 161.55 crore on Thursday, as per provisional data from the stock exchanges.

For the week, Sensex rose 485 points and Nifty spiked 127 points. Jignesh Chaudhary, Head of Research, Veracity Broking Services said: ‘Indices lost their way and closed weak as the day progressed. Profit booking was seen.’

Jayant Manglik, President-retail distribution, Religare Securities said, weak global cues and continued unrest in the Middle East and Ukraine have dampened the sentiments of market participants. Also, lower than expected results from Wipro added to that negativity, he added.
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