News: Indian FII inflows top $5bn in 9 mths

(BS 30/09/2006) Mumbai - Foreign institutional investors' (FIIs) investments in the domestic equity market has crossed $5 billion in the current calendar year. While it just took seven months to surpass this figure in calendar 2005, it took nine months in the current year.

FIIs' net investments touched $5.02 billion (Rs 22,814 crore) during the first nine months of 2006 compared with $8.60 billion (Rs 37,501 crore) during the period last year.

FIIs bought $274 million (Rs 1,275 crore) in the last two days. They bought $155 million (Rs 720 crore) of shares on Thursday and $119 million (Rs 555 crore) on Wednesday.

Their net investment in September 2006 at $1.17 billion (Rs 5,425 crore) was the highest in the last six months. Earlier in March, they had bought $1.51 billion (Rs 6,689 crore) shares from the Indian markets.

Net inflows in February stood at $1693 million (Rs 7,588 crore) and that in January $805 million (Rs 3,678 crore). FIIs made net investments of $1 billion in August.

New FIIs from the UK, the US, Germany, Singapore, Austria, Luxembourg and Oman have set up shop in the country in the last nine months.

In September, 13 new FIIs entered the market and 22 in August. In the current year thus far, 146 new FIIs have opened their offices, taking their tally close to 969.

FIIs pumped in a record $10.7 billion in 2005, making it their highest-ever investment in Indian equities since the markets opened up in December 1993.

According to data released by the Securities and Exchange Board of India, FIIs bought $8.5 billion in calendar 2004. They had bought $6.59 billion shares in 2003 and $740 million in 2002.