FIIs pour $1.9 bn into India in July

Mumbai, Aug 2 | Updated: Aug 3 2005, 05:30am hrs
The rains or foreign money, its a deluge. Foreign institutional investors (FII) have pumped in $1.9 billion in July, the highest ever in any calendar year. The total net FII investment in CY05 is now more than $6.7 billion.

Foreign funds started the current calendar year on a slow note by investing a paltry $281.1 million in January, only to step up in following couple of months. Net FII investment in February and March was pegged at $1.8 billion and $1.7 billion, respectively.

February also witnessed one of the biggest block deals in Indian history involving FIIs when private equity major Warburg Pincus sold 5% of their stake in telecom major Bharti Tele-Ventures Ltd on February 2. The deal was worth over $300 million.

The India growth story still holds true and this is evident from the increase in the number of FIIs. Many Japanese and European funds have also started eyeing India with an aim to cash in on the rising equity markets, said a head of a foreign brokerage.

The current calendar saw a rise in the number of FIIs registered with Sebi. According to Sebi, 102 new FIIs registered in CY05. The total number of registered FIIs as on August 2 was 739, much higher than 637 as on December 31, 2004.