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Charts & Analysis

FIIs Net Buy 2,261 Cr. in Nov Till 26th

Foreign Institutional Investors (FIIs) have been buying equities while selling debt. Till 26th November they bought around Rs. 8,000 cr. ($1.3 billion) in the stock market, while selling  Rs. 5,700 cr. ($0.9 billion) of debt.

Net Monthly FII Investment

FIIs, though, remain strongly positive for 2013, with over 50,000 cr. of net investment.

They’ve bought 97,000 crores in equity (which is $16 billion), even though, for the year, the market index remains largely unchanged.

FII Investment Table

Source: SEBI.

  • Shiva says:

    TOPIC for the free webinar
    Hay Deepak, Just wanted to suggest a topic for ur Free webinar. How about ULIPS vs Mutual funds. Please delete this comment after reading.

  • Rajat Bose says:

    Telling is the statistics on debt where they had been a seller for the last six consecutive months. Once the eventual QE3 taper starts–even if by a small reduction of just $10 billion to start with–Indian equities will also meet the same fate. The only way out to stop that would be correcting the CAD by a large margin.
    I am certain very few would agree to the above prognostication but studying the history of liquidity/debt cycles turning over the last 200 years point to just that. The prospect is horrifying, no doubt!
    It has never been any different for emerging economies. Liquidity comes in waves, once it stops and the reverse flow happens it takes many years to get back on a solid growth path again. Have no illusions: all emerging economies that have posted strong growth for a substantial period over the last 200 years have been on the back of capital inflow from liquidity surplus advanced countries. We need such inflow badly, willy-nilly. In recent memory, Volcker led drying up of the liquidity tap in the late 1970s and early 1980s produced the lost decade of almost no growth of 1980s for Latin America.
    Only quick reversal had been the South East Asian setback and subsequent turnaround in the late 1990s. However, that was led by most countries there turning their CADs in to Current Account Surpluses or there had been substantial reduction of CAD. Whatever be that even for a short period of time those economies also suffered intense pain.
    Hope, we correct our imbalances soon enough and not lose precious time else we have a real problem ahead of us. The idea that a strong bull market would happen if there were to be a strong government at the center post elections next year would at best be a temporary blip unless the QE3 continues happily ever after and so-called “Taper” becomes another case of Waiting for Godot.