Best December for FII inflows
This holiday season seems to be one of the busiest ever for overseas investors in Indian equities. Foreign institutional investors (FIIs) shopped for equities worth more than $4 billion this month, making it the best ever December for overseas inflows.
As per Sebi data, FIIs have net bought $4.12 billion worth of Indian equities so far this month — the highest ever for the month of December — with two additional sessions still to go. Moreover, overseas funds net bought Indian stocks for the 29th consecutive session as on December 26 — the longest stretch of net purchases since the record 41-day streak beginning October 27, 2010. December also saw the second highest monthly inflows this year, after February ($5.13 billion).
The amount of equity inflows this month is greater than the sum of money that has flown into Indian equities during December in the last six years (from 2006 to 2011). Sebi data showed that FIIs bought $19.66 million of Indian equity in December 2011, nearly $329.21 million in December 2010, around $2.2 billion in December 2009, about $270 million in December 2008 and about $1.25 billion in December 2007.
Market experts were of the view that in absence of growth in the global economy, Indian markets continue to look attractive, backed by expectations of additional reforms in the next two-three months, coupled with a cut in interest rates by the RBI. Several foreign brokerages and institutions remain optimistic on Indian
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