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Millennium Post

Less than 3 months into 2013, FIIs infuse $10 bn in Indian equities

Overseas investors have poured in $1.4 billion into Indian equities in March, taking the total investment tally to $10 billion for the calendar year. Foreign Institutional Investors (FIIs) infused a net amount of $1.4 billion (about Rs 7,547 crore) in Indian stock market in March so far taking the total inflows to $10 billion (Rs 54,045 crore) in less than three months of 2013.

FIIs had pumped in $4.57 billion (Rs 24,440 crore) in February and $4.05 billion (Rs 22,000 crore) in January.

Market analysts attributed huge inflows into Indian equities to a slew of measures taken by the government, including the postponement of General Anti Avoidance Rule (GAAR) implementation by two years to 1 April 2016 and partial decontrol in diesel prices.

Additionally, easing of interest by Reserve Bank of India (RBI) and subsequent impact of improved liquidity position have further boosted FIIs inflow.

During 1-22 March, FIIs were gross buyers of shares worth Rs 57,303 crore, while they sold equities amounting to Rs 49,756 crore, translating into a net investment of Rs 7,547 crore ($1.4 billion), as per Sebi data.

Foreign fund houses also infused a staggering Rs 7,373 crore ($1.35 million) in the debt market so far this month.This takes the overall net investments by FIIs into debt markets to Rs 14,322 crore ($2.65 billion) so far this calendar year.'FIIs have been infusing money into the Indian market on account of various reform measures taken by the government and change in RBI's monetary policy that has added liquidity to the system. This liquidity will help in growth of the country,' Wellindia Executive Director Hemant Mamtani said.

Earlier this month, RBI has slashed repo rates by 25 basis points to 7.5 per cent in its mid-quarter monetary policy review.

FIIs bought equities worth $24.4 billion in 2012, about $5 billion below record purchases two years ago.

As on 22 March, the number of registered FIIs in the country stood at 1,757 and total number of sub-accounts was 6,322.


BSE DOMINATES SME SEGMENT WITH 90% MARKET SHARE

The country's premier stock exchange Bombay Stock Exchange Ltd has said that it has emerged as the market leader in SME segment with more than 90 percent market share.

In the last one year since the launch of the SME platform, 17 companies were listed, while nine more are in the process of listing their shares by 31 March year.

'BSE has emerged as the market leader in SME segment with more than 90 per cent market share in this segment. With innovations, technology, investor focus, good services and higher wealth creation, SMEs and investors in SME are preferring BSE SME platform,' BSE MD & CEO said Ashishkumar Chauhan said.

'We are successful in wealth creation for SME sector and in turn for the economy as a whole,' Chauhan said.The rival NSE had listed three companies so far on its SME exchange platform.

BSE launched its SME platform on 13 March 2012 with the listing of BCB Finance. The SME-listed companies have rewarded its investors reasonably.

As per the data provided by BSE, out of 17 listed companies only two companies, namely RCL Retail and Bronze Infra-Tech, are quoting at Rs 9.3 and Rs 8.7, below their issue price offer of Rs 10 and Rs 15, respectively.

However, shares of Looks Health Services gave handsome return as it is quoting at Rs 214 against the issue price of Rs 40 per share. Max Alert Systems is also quoting higher at Rs 92 against its issue price of Rs 20.

Among other shares, BCB Finance is quoting at Rs 25.1 (issue price of Rs 25), Sangam Advisors at Rs 22 (Rs 22), Jupiter Infomedia at Rs 23.8 (Rs 20), Jointeca Education Solutions Rs 15 (Rs 15), SRG Housing Finance Rs 21.75 (Rs 20), BSE data said.

The market regulator, Securities and Exchange Board of India (Sebi), accorded approval to the SME Exchange by BSE in September 2011.
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