Bloomberg News

Foreign Investors Buy Net 2.15 Billion Rupees of Indian Stocks

July 20, 2012

Overseas investors bought a net 2.15 billion rupees ($38.8 million) of Indian stocks yesterday, raising their investment in the equities this year to 512.5 billion rupees, according to the nation’s market regulator.

Foreigners bought 20.3 billion rupees of shares and sold 18.15 billion rupees, the Securities & Exchange Board of India said on its website today. Foreign funds bought a net 1.66 billion rupees of bonds, taking total inflow into debt this year to 223.7 billion rupees, the data show.

Overseas investors have been net buyers of Indian stocks since June 29, the day after the government said proposed laws aimed at curbing tax avoidance won’t apply retrospectively or to cases below a certain monetary threshold. The draft guidelines released by the finance ministry on June 28 also proposed exempting foreign institutional investors if they refrain from routing money to India via tax shelters such as Mauritius.

Foreigners have invested 4.956 trillion rupees in stocks and 1.431 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.

To contact the reporter on this story: Paresh Jatakia in Mumbai at pareshj@bloomberg.net

To contact the editor responsible for this story: Arijit Ghosh at aghosh@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus