Millennium Post

NSE corners 80% share in FII inflows into equities

With FII inflows hitting a record high in the last fiscal, leading stock exchange NSE has cornered more than 80 per cent market share in the overall inflows from foreign investors into equities. The overseas investment inflow into the Indian markets during the financial year ended March 31, 2015 was the highest ever, although there have been outflows in recent weeks.

According to the NSDL data, FPI inflows were to the tune of Rs 2,77,461 crore for debt and equity together from April 2014 to March 2015. Out of this, the FII inflow figure for the equities was the second highest ever to the tune of Rs 1,11,333 crore. In equity inflows from FIIs, NSE alone accounted for over 80 <g data-gr-id="20">per cent</g> market share.

According to the experts, the high FII inflows and positive returns in the markets in the last financial year were mainly driven by stability at the Centre and a strong push by the government on economic reforms. 

There has been significant growth in volumes across products and segments in the last financial year. On the NSE, the daily average turnover in the cash market has increased by 53 per cent from Rs 11,856 crore a year ago to Rs 18,205 crore between mid-May 2014 and mid-May 2015. The retail participation also grew by 18 per cent.

The last fiscal also saw six IPOs in the equity market, which collectively raised more than Rs 1,300 crore. 

To auction investment limit for Rs2,684-cr bonds today
The National Stock Exchange will auction on Monday investment limits for foreign investors to buy government debt securities worth Rs 2,684 crore. This is the highest investment limit on offer for overseas investors in more than half-a-dozen auction conducted since December. On December 1, exchanges had auctioned investment limits worth Rs 3,041 crore for government debt securities. The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased. The auction for debt securities worth Rs 2,684 crore would take place on NSE’s e-bid platform.

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