All those economic ills do not seem to be scaring foreign investors away from India as they seem to be on a buying spree.
According to data by Ace Equity, foreign institutional investors (FIIs) have bought a staggering Rs 49,729 crore as of 16 July from the start of the year. In comparison, domestic institutions have turned net sellers as they have offloaded almost 23,053.7 crore of equity during the same time period.
“The Indian markets, have been the most attractive destination for the investors. Moreover, over the last one year, the markets have not performed in spite of a robust 13-14 percent earnings growth. Thus FIIs, which were not invested in last year, have invested in these markets in spite of rupee depreciation. While the Mutual funds, which have been investing at regular intervals would be booking some profits.” said Sarabjit Kaur Nangra, VP-Research, Angel Broking told Firstpost.
FIIs were net sellers during the month of April-June as they offloaded almost 1,957 crore. However, the trend seems to have reversing as they are now on a buying spree as they have bought shares worth Rs 7,735 crore till 16 July. During the same period, domestic investors have sold off shares amounting to Rs 3,620 crore.
However, this has not had too much impact on the Sensex as it has fallen by 1.7 percent during the same period.
FIIs had mostly stayed away from Indian equities in 2011. They flocked towards the debt market last year with a net investment of Rs 20,293 crore, while pulling out Rs 2,812 crore from equities.