Net FII inflows into Indian stocks cross $7 bn this year
11 Feb 2013 7:57 AM IST
The investment by overseas investors into Indian stock market since the beginning of 2013 has crossed $7 billion mark, out of which more than $3 billion were pumped in the month of February alone.
Foreign Institutional Investors (FIIs) infused a net amount of 3.23 billion (about Rs 17,211 crore) during February, taking the total for 2013 so far to $7.29 billion (Rs 39,270 crore ) for Indian stocks.
Market analysts attributed strong FII inflows to signs of easing interest rates by the Reserve Bank and the subsequent impact of improved liquidity position.
Additionally, a slew of measures taken by the government, including the postponement of GAAR (General Anti Avoidance Rules)implementation by two years to April 1, 2016 and partial decontrol in diesel prices have also attracted foreign investors.
During February, FIIs were gross buyers of shares worth Rs 34,298 crore, while they sold equities amounting to Rs 17,087 crore, translating into a net investment of Rs 17,211 crore ($ 3.23 billion), as per data available with market regulator Sebi.
Foreign fund houses also infused Rs 1,249 crore ($234 million) in the debt market in February. This takes the overall net investments by FIIs into debt markets at Rs 4,196 crore ($785 million) so far this calendar year.
'FIIs have been betting high on Indian equities since last six-seven months and reform measures taken by the government has further boosted the sentiments,' Wellindia Executive Director Hemant Mamtani said.
'Besides, FIIs have been infusing money into the Indian market on account of change in RBI's monetary policy that have added liquidity to the system. This liquidity will help in growth of the country,' he added.
FIIs bought equities worth $24.4 billion in 2012, about $5 billion below record purchases two years ago.
The stock market barometer Sensex has gained 58 points so far this year to end at 19,484.77 points on Friday.
As on 8 February, the number of registered FIIs in the country stood at 1,761 and total number of sub-accounts were 6,333.
SEBI TO AUCTION BONDS WORTH $11.3 BN FOR FIIS THIS MONTH
Market regulator Sebi will auction bonds worth $11.3 billion this month, following the hike in investment caps for FIIs in corporate and government debt markets by $5 billion each.
The auction for allocation of available debt limits after the increase in investment ceilings will be conducted for Foreign Institutional Investors on 20 February through an electronic bidding process.
The move follows a decision by the Reserve Bank of India to enhance the limit for investment by FIIs in the long-term government debt securities by $5 billion to $15 billion and in the corporate non-infrastructure debt category to $5 billion.
The Securities and Exchange Board of India (Sebi) said in a circular that the 3-year lock-in period for the first time investments by FIIs in government securities has also been done away with.
Pursuant to the increase in investment caps, Sebi said auction will be conducted for these additional limits along with the already available limits on 20 February.
The incremental limit of $5 billion (about Rs 27,000 crore) in the long-term government debt category will be auctioned along with the unutilised debt limits in this category as on 31 January 2013 (Rs 7034 crore), on 20 February 2013, taking the total available auction size to Rs 33,959 crore (over $ 6 billion).
Besides, the incremental limit of $ five billion in the non-infrastructure corporate bond segment would be auctioned as a separate category on 20 February 2013, Sebi said.
Collectively, investment limits worth about Rs 61,000 crore ($11.3 billion) would be auctioned on that day.
The FIIs need to bid for investment limits in an auction conducted periodically by Sebi as per the available limits, pursuant to which they can invest in the bond market.
Sebi said that the time period for utilisation of the government debt limits allocated through bidding process would be 30 days, while the time period for utilisation of the corporate debt limits would be 60 days.
Foreign Institutional Investors (FIIs) infused a net amount of 3.23 billion (about Rs 17,211 crore) during February, taking the total for 2013 so far to $7.29 billion (Rs 39,270 crore ) for Indian stocks.
Market analysts attributed strong FII inflows to signs of easing interest rates by the Reserve Bank and the subsequent impact of improved liquidity position.
Additionally, a slew of measures taken by the government, including the postponement of GAAR (General Anti Avoidance Rules)implementation by two years to April 1, 2016 and partial decontrol in diesel prices have also attracted foreign investors.
During February, FIIs were gross buyers of shares worth Rs 34,298 crore, while they sold equities amounting to Rs 17,087 crore, translating into a net investment of Rs 17,211 crore ($ 3.23 billion), as per data available with market regulator Sebi.
Foreign fund houses also infused Rs 1,249 crore ($234 million) in the debt market in February. This takes the overall net investments by FIIs into debt markets at Rs 4,196 crore ($785 million) so far this calendar year.
'FIIs have been betting high on Indian equities since last six-seven months and reform measures taken by the government has further boosted the sentiments,' Wellindia Executive Director Hemant Mamtani said.
'Besides, FIIs have been infusing money into the Indian market on account of change in RBI's monetary policy that have added liquidity to the system. This liquidity will help in growth of the country,' he added.
FIIs bought equities worth $24.4 billion in 2012, about $5 billion below record purchases two years ago.
The stock market barometer Sensex has gained 58 points so far this year to end at 19,484.77 points on Friday.
As on 8 February, the number of registered FIIs in the country stood at 1,761 and total number of sub-accounts were 6,333.
SEBI TO AUCTION BONDS WORTH $11.3 BN FOR FIIS THIS MONTH
Market regulator Sebi will auction bonds worth $11.3 billion this month, following the hike in investment caps for FIIs in corporate and government debt markets by $5 billion each.
The auction for allocation of available debt limits after the increase in investment ceilings will be conducted for Foreign Institutional Investors on 20 February through an electronic bidding process.
The move follows a decision by the Reserve Bank of India to enhance the limit for investment by FIIs in the long-term government debt securities by $5 billion to $15 billion and in the corporate non-infrastructure debt category to $5 billion.
The Securities and Exchange Board of India (Sebi) said in a circular that the 3-year lock-in period for the first time investments by FIIs in government securities has also been done away with.
Pursuant to the increase in investment caps, Sebi said auction will be conducted for these additional limits along with the already available limits on 20 February.
The incremental limit of $5 billion (about Rs 27,000 crore) in the long-term government debt category will be auctioned along with the unutilised debt limits in this category as on 31 January 2013 (Rs 7034 crore), on 20 February 2013, taking the total available auction size to Rs 33,959 crore (over $ 6 billion).
Besides, the incremental limit of $ five billion in the non-infrastructure corporate bond segment would be auctioned as a separate category on 20 February 2013, Sebi said.
Collectively, investment limits worth about Rs 61,000 crore ($11.3 billion) would be auctioned on that day.
The FIIs need to bid for investment limits in an auction conducted periodically by Sebi as per the available limits, pursuant to which they can invest in the bond market.
Sebi said that the time period for utilisation of the government debt limits allocated through bidding process would be 30 days, while the time period for utilisation of the corporate debt limits would be 60 days.
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