FIIs bring Rs 3,614 cr in 5 days; accounts 91% of 2009 inflow

New Delhi, May 10 (PTI) In just five trading sessions
this month, the Indian equity market saw foreign investments
to the tune of Rs 3,614 crore, accounting for 91 per cent of
the overall purchases so far this year.

Foreign Institutional Investors (FIIs) have pumped in a
net of Rs 3,614 crore in equities in May, which saw the Bombay
Stock Exchange benchmark Sensex breaching the psychological
12,000-level, the highest in the last seven months.

Last week, FIIs made a gross purchase of equities worth

Rs 14,447 crore and sold equities valued Rs 10,832 crore,
resulting in net investment of Rs 3,614 crore, as per the data
available with the market regulator Securities and Exchange
Board of India.

So far this year, FIIs have made a gross purchase of
equities worth Rs 1,35,692 crore and sold equities valued at
Rs 1,31,721 crore, resulting in net investment of Rs 3,970
crore, Sebi data shows.

The previous week also recorded the biggest weekly
infusion by the FIIs in the current calendar year. With a bulk
investment of Rs 1,491.10 crore in a single day, FIIs remained
net purchasers in equities in the remaining days.

However, analysts believe buying equities by the FIIs
last week was just momentary as there was no specific reason
to bring back their confidence.

"There was heavy buying by FIIs in a single day and on
the other days they made normal investments. This week they
would square-off their positions and wait for clarity for the
general election results on May 16," Arun Kejriwal Head of
Kejriwal Research and Investment Services said.

After pulling out a hefty Rs 52,987 crore from the Indian
stock markets in 2008, which saw the Bombay Stock Exchange
benchmark Sensex plunging 51 per cent, FIIs have turned net
buyers during the last week of April.

The Sensex has gained over 23 per cent so far this year
to touch 12,134.75 points, the highest level in the past seven
months.

Indicating a revival in the stock market, the flight of
FIIs back to the Indian markets saw an infusion of Rs 6,508
crore in the capital market in April alone, the highest
monthly infusion so far this year.

An analysis of the data of foreign investment shows that
the confidence of FIIs in the Indian equities started to build
in the month of March, when they made a net investment of Rs
530 crore in stocks.

However, the investment was significantly less as
compared to Rs 6,681 crore sell-off by them in the first two
months of 2009.

"FIIs would be selling now as prices have gone up too
soon. This week they will refrain from making any large scale
purchases and would resort to selective profit booking,"
Unicon Financial Intermediaries chief executive Gajendra
Nagpal said. PTI SKR
AM
NNNN