Overseas investors poured in more than Rs 3,300 crore in the country's stock market last week as the government continued with its reforms to boost economic growth and investor sentiment.
During October 1-5, FIIs were gross buyers of shares worth Rs 13,094 crore, while they sold equities amounting to Rs 9,714 crore translating into net inflow of Rs 3,381 crore ($645 million), according to the data available with market regulator Sebi (Securities and Exchange Board of India).
Foreign Institutional Investors (FIIs) investment in the country's equity market has reached Rs 85,711 crore ($16.50 billion) so far this year. Market experts believe that FIIs continued their bullish stance on the equity market as the government progressed with its reform initiatives to boost economic growth and investor sentiment. They also expects FII inflows into the country to rise.
"The Cabinet approval for 49 percent foreign direct investment (FDI) in insurance and FDI in pension sector have further boosted overseas investors' sentiments last month have further pushed overseas investors to pour money in the equity market," CNI Research Head Kishor Ostwal said.
Wellindia Vice President Research Vivek Negi said," the foreign fund inflows into domestic equity continued on the government's reform measures and I hope it will continue in the coming months as well."
Apart from equity, FIIs also infused Rs 1,382 crore in the debt market so far this month. The huge foreign inflows have been pushing stock indices higher with the BSE's benchmark Sensex rising by 176 points last week to settle at 18,938.46 points on Friday.
As on October 5, the number of registered FIIs in the country stood at 1,753 and total number of sub-accounts were 6,329 during the same period.