Wednesday, October 6, 2010

FIIs scale $20bn peak for first time

FII inflows























MUMBAI: Net FII inflows for the current year crossed the magic figure of $20 billion on Tuesday even as the country’s central bank sounded caution about these unabated flows. Sebi data showed that this year’s flows are already at record levels, beating the $17.7 billion net inflows recorded in 2007, just before the US subprime-led financial troubles spread across the globe. 

The data showed that while the bulk of the inflows — $15.3 billion — came through the secondary market route, $5 billion was infused into the country through IPOs , QIPs, rights offers and other equity issuances by Indian companies to foreigners. 

In the debt segment too net FII inflows crossed the $10 billion mark on Tuesday , Sebi data showed. This is also a new yearly high figure . While global investors are lapping up India’s growth story, some institutional dealers are worried about the fact that money from a number of smaller countries are also flowing into India through the FII channel. As a result of this, the Indian rupee is also gaining in strength against the US dollar.


Source:6 OCT, 2010, 06.28AM IST,TNN 

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