Overseas funds bought a net 6.51 billion rupees ($133 million) of Indian equities yesterday, taking their total investments in equities this year to 362.2 billion rupees, according to the nation’s market regulator.
Foreigners bought 36.8 billion rupees of shares and sold 30.3 billion rupees, the Securities & Exchange Board of India said on its website today. The flows helped the benchmark BSE India Sensitive Index complete its second straight monthly gain yesterday for the first time since September 2010.
Offshore investors bought a net 10.4 billion rupees of bonds, taking total flows into debt this year to 270.3 billion rupees, the data show. They put 421 billion rupees in debt in 2011. Foreigners have invested 4.806 trillion rupees in stocks and 1.478 trillion rupees in bonds since they were allowed into the country in 1993.
India’s $1.3 trillion stock market, Asia’s fifth-biggest, is influenced by flows from abroad. Inflows surged to a record in 2010, making the Sensex the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 led the biggest annual slump of 52 percent.
Offshore funds pulled out 27.1 billion rupees from local equities last year, compared with record flows of 1.33 trillion rupees in 2010, as Europe’s debt crisis threatened the global economy and cooled demand for emerging-market assets. That led to a 25 percent drop in the Sensex, the second worst annual loss, and sent the rupee to an all-time low.
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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