FIIs pump Rs 3,000 cr in 2 weeks

Overseas investors pumped in nearly Rs 3,000 crore in Indian stock market in the past two weeks amid hopes of government initiatives on policy reforms and easing of monetary policy.

Foreign Institutional Investors (FIIs) investment in the country's equity market has reached Rs 65,954 crore (about USD 12.81 billion) so far this year.

Market analysts believe that inflows would continue in the coming months as well on account of recent big-ticket announcements by government, including operationalisation of 51 per cent FDI in multi-brand retail, allowing foreign carriers to buy up to 49 per cent stake in domestic airlines.

Further, liberalisation of the broadcasting sector would prove as major sentiment lifter for foreign investors, they added.

"I think FII inflows will continue in the domestic equity market on major policy reforms announced by the government, Rajesh Jain, EVP retail research, Religare Securities, said.

During September 1-14, FIIs were gross buyers of shares worth Rs 20,854 crore, while they sold equities amounting to Rs 17,969 crore, translating into a net investment of Rs 2,885 crore (USD 521 million), according to data available with the

market regulator Sebi.

Apart from equities, FIIs also invested Rs 1,838 crore in the debt market during the period under review.

Geojit BNP Paribas Research Head Alex Mathews said foreign investors have sidelined the concerns of sluggishness in the economy and high interest rates. They have shown faith in the Indian equity market on expectations of the government's fresh initiatives on policy reforms, he added.

FIIs have also put in money in the stock market due to easing of monetary policy by the US Federal Reserve and they also cheered the decision of hike in diesel prices, Mathew added.

Buoyed by strong FII inflows, the BSE benchmark index, Sensex, surged 780 points over four per cent so far this month to close at 18,464.27 points on Friday.

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