SEPT 2:
Overseas investors pumped in close to Rs 11,000 crore in the Indian stock market in August - highest in six months - amid hopes of government initiatives on policy reforms and easing of monetary policy globally.
Thus, FII investment in the country’s equity market has reached Rs 63,070 crore so far this year, and Rs 24,518 crore in the debt market during the same period.
In August, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 48,136 crore, while they sold equities amounting to Rs 37,332 crore - net inflow of Rs 10,803 crore ($1.94 billion), according to the data available with the market regulator Sebi.
This was the highest net investment by FIIs in stocks since February, when they had infused Rs 25,212 crore. In July, they had pumped in Rs 10,273 crore.
However, the current political environment may dashed hopes as the monsoon session of Parliament has been stalled many times following the CAG’s report on coal block sanctions.
As on August 31, the number of registered FIIs in the country stood at 1,754 and total number of sub-accounts were 6,333 during the same period.
Stock markets are likely to react positively tomorrow as an expert committee on General Anti Avoidance Rules (GAAR) has recommended postponement of the controversial tax provision by three years.
Bernanke had in an August 31 speech to central bankers and economists at an annual forum in Jackson Hole focussed on the economic challenges that the US faces while hinting that the Fed will provide more policy stimulus, if needed, to aid recovery.
“Stock market would react positively to the GAAR move in near term,”
