According data from National Securities Depository Limited (NSDL)
and Securities and Exchange Board of India (Sebi), foreign
institutional investors (FIIs) have put in Rs 18,437 crore
($2.74 billion) thus far in the Indian market during the current
month (till March 23, 2016).(FII) inflow in the Indian market so
far this month is the highest single-month investment since May
As per provisional stock exchange data, they invested another
Rs 2,043 crore in equities on Monday (March 28),taking their total
net investments to Rs 20,480 crore thus far in the current month
with three trading days still left.
The benchmark indices – the S&P BSE Sensex and the Nifty 50 – have
surged nearly 10% in this backdrop.
This is sharp contrast to the first two months of calendar year
(2016) when they had sold an aggregate Rs 19,752 (Rs 11,471 crore
in January and Rs 8,281 crore in February) in Indian equities. As
a result, the benchmark indices had plunged 12% during this period.
The up move also comes on the back of a hope that the Reserve Bank
of India (RBI) will cut key rates in the next Monetary Policy
review scheduled for April 5 given that the Union Budget for 2016
– 17 stuck to the earlier set fiscal deficit target of 3.5 per cent
of gross domestic product (GDP) for FY17.
Analysts believe that the India will continue to attract FII flows
over the long term, as economic fundamentals remain stronger than
other emerging market (EM) economies. That apart, clarity on the
path that the US Fed is likely to follow should keep the current
momentum in the equity markets strong, they say.