Overseas investors bought a net 38.9 billion rupees ($697.6 million) of Indian stocks on June 29 and July 2, raising their investment in equities this year to 458.9 billion rupees, according to the nation’s market regulator.
Foreigners bought 69.3 billion rupees of shares and sold 30.4 billion rupees over the two days, the Securities & Exchange Board of India said on its website today. Foreign funds bought a net 8.49 billion rupees of bonds over the period, taking total inflow into debt this year to 217.1 billion rupees, the data show.
India on June 28 proposed that a clampdown on tax avoidance due in 2013 won’t apply retrospectively or to cases below a certain monetary threshold, helping allay investor concerns. The draft guidelines released by the finance ministry on that day also proposed exempting foreign institutional investors if they refrain from routing money to India via tax shelters such as Mauritius.
Foreigners have invested 4.903 trillion rupees in stocks and 1.424 trillion rupees in bonds since they were allowed into the country in 1993.
India’s $1.1 trillion stock market, Asia’s fifth-biggest, is influenced by flows from overseas. Flows surged to a record in 2010, making the BSE India Sensitive Index (SENSEX) the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 led to the biggest annual slump of 52 percent.
The regulator provides data on shares bought and sold by large investors, including trades in the primary and secondary markets, with a delay of at least a day.
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