FII inflows cross $23 bn in 2012

Written by feBureau | Mumbai | Updated: Dec 21 2012, 15:09pm hrs
The cumulative inflows from foreign institutional investors (FIIs) have crossed the $23-billion mark in the current calendar year. This is the highest-ever inflow in one calendar year since 2010 and the second-highest in the last 14 years.

According to BSE and Bloomberg data, FIIs pumped-in more than $4 billion into Indian equities in the last one month on hopes the government will take more steps to boost economic growth and investment.

Data also show Indian market has attracted the highest amount of foreign flows compared with Asian peers so far. South Korea stood second with inflows worth $14.4 billion since January, followed by Japan ($16 billion), Taiwan ($4.7 billion) and Philippines ($2.5 billion).

Experts said the market was seeing revival in domestic retail and individual investors sentiment, that usually tends to follow the investment judgment of the FIIs. With the government announcing series of reforms measures in September to boost economic growth, easy liquidity conditions, foreign institutions (rating agencies and brokerages) expressed their positive stance on Indian equities.