FII INFLOWS CROSS

$18 BN IN 2010
Foreign investment highest ever in dollar
terms in a single calendar year
MEHUL SHAH This was the highest week-
Mumbai, 27 September ly inflow into India equity funds
in nearly three years. EPFR da-
oreign institutional ta showed foreign investors out

F investors (FIIs) have

poured about $18 bil-
lion (`81,880 crore)
in Indian stocks so
far this year, their highest in-
vestment in dollar terms in a
calendar year.
$503 million in India equity
funds till September 22.
At Monday’s close of
20,117.38, the Sensex is about
5.4 per cent away from its
record high of 21,206.77, hit on
January 10, 2008.
FIIs’ net purchase were “Within emerging markets,
worth $17.89 billion in this year India is looking attractive,” said
till Friday, according to data Pauli Laursen, who oversees In-
available on the Securities and dian equities at SydInvest Asset
Exchange Board of India (Se- Management in Copenhagen.
bi) website. Provisional data
on the Bombay Stock Exchange
ON A ROLL In this month so far, FIIs
have net-bought shares worth
FII INVESTMENT IN
(BSE) website shows they net- nearly $5 billion (`22,700
bought shares worth `1,136.8 EQUITY MARKET crore). Helping make India
crore ($252 million) in the In- the best performer within the
dian market today. This brings emerging market pack in this
the year’s total to $18.13 bil- month.
lion (`82,360 crore). The 30-stock Sensex has
The highest FII inflow in gained nearly 12 per cent in
both dollar and rupee terms this month so far. During the
was last year, when they had same period, China’s Shang-
invested $17.64 billion. hai Composite Index has fall-
The FII investment in rupee en 0.4 per cent, Taiwan’s Taiex
terms in 2010 is lower com- has advanced 7.55 per cent,
pared with 2009 because of ap- South Korea’s Kospi has gone
preciation in the Indian cur- up 6.8 per cent, Brazil’s Boves-
rency against the dollar. BS Re- pa has added 4.7 per cent and
search Bureau figures show Russia’s Micex has moved up
a dollar fetched `48.37 in 2009, 4.7 per cent.
on average, compared with However valuations are not
`46.05 in this year. cheap, experts say. “Valuations
With the BSE benchmark, are not in a comfortable zone.
the Sensex, racing towards an They are bit stretched,” said
all-time high, foreign investors U R Bhat, managing director at
are pouring money in funds fo- Till September 24 Dalton Capital Advisors (India).
cused on Indian stocks. For ex- Compiled by BS Research Bureau At Friday’s close, the Sen-
ample, India-focused equity sex traded at 19.1 times its
funds received $300 million in- available from EPFR Global, estimated earnings per share
flows for the week ended Sep- which tracks fund flows in for the current financial year,
tember 22, according to data world markets. Bloomberg data showed.