FIIs, MFs hike their share in total turnover

Mumbai, March 21 | Updated: Mar 22 2006, 05:30am hrs
Foreign institutional investors (FIIs) and mutual funds (MFs) have started playing a far greater role in the equity markets now, which is being clearly proved by their share in the total cash turnover of both the leading stock exchanges.

Interestingly, when the Sensex moved from 10,000 to 11,000 levels on Tuesday, the share of FIIs and MFs in the total turnover was greater than ever before.

The index gained 1,000 points in just 29 trading sessions and the share of FIIs and MFs in the total turnover during the same period was pegged at 32.50% and 9.10%, respectively. The combined share of these institutional investors have never been so high on the domestic bourses before. Experts say the impressive returns given by the Indian equity market when compared to the other emerging markets in the recent past has brought more and more FIIs to the country and this has, in turn, given a boost to the liquidity scenario.

Earlier, when the Sensex moved from 9,000 to 10,000 levels in 48 trading sessions, FIIs and MFs contributed lesser than what they have contributed in the latest 1,000 points rally. While the share of FIIs was pegged at 27.19%, MFs were less than 9% at 8.55%. Similar was the case when the benchmark index moved from 8,000 to 9,000 with FIIs contributing 25.55% of the total turnover. Fund houses accounted for only 8.01% of the turnover.