Secondary market investments in India by foreign institutional investors (FIIs) have crossed Rs 1 lakh crore so far this calendar year. Adding today’s purchases of Rs 1,165 crore (provisional data), FIIs bought equities worth Rs 1,01,315.83 crore in the secondary market alone.
Together with primary market investments, FIIs have pumped in Rs 1.04 lakh crore so far in 2012.
Yet, the rupee remained weak against the dollar. Though the rupee appreciated during the day to close at 55.28, it recorded its life-time low of 57.37 in June.
In the first eleven months of 2012, February and September witnessed a maximum equity infusion by FIIs. Although the year saw no major fundamental change and even as most market participants accused the Government for doing nothing on the policy front, foreign institutions kept pumping money into the equity market due to ‘easy’ global money, said analysts. The Sensex and Nifty gained about 25 per cent in 2012. However, mid- and small-cap indices were the star performers, as much of the money flowed into that space.
“Foreign inflows have been good in the equity market because global as well as domestic cues have been positive. There seems to be some sort of positive policy movement now. The decision on foreign direct investment in multi-brand retail is expected soon. It gives a feeling that the Government is actually pushing for reforms,” said Madhumita Ghosh, Head of Research, Unicon Financial Intermediaries