FIIs infuse $6b in stocks in Oct-Dec qtr

Tags: News
Foreign institutional investors were net buyers on Dalal Street, pumping in $ 6 billion during the quarter ended December on expectations of change in government in the upcoming general elections, says a Bank of America Merrill Lynch (BofA-ML) report.

It was a nearly 10-fold jump from the inflows of the previous, July-September, quarter.

"During December quarter, FIIs remained positive on Indian markets on expectations of change of government in the upcoming general elections," the report noted.

This was the fifth consecutive quarter when the Indian markets have seen positive flows from FIIs.

"...Close to $ 6 billion was pumped in the Indian equity markets by FIIs in the October-December quarter as compared to $ 700 million inflow in the previous quarter," the report noted.

On the other hand, LIC and domestic mutual funds were net sellers of equities during the quarter under review.

FIIs were bullish on sectors like software, financial, utilities, industrial, auto and energy among others.

Software saw the highest net buying by FIIs with buying into Tech Mahindra worth $ 451 million followed by Infosys ($ 372 million), HCL Tech ($ 257 million) and Wipro ($ 246 million).

"Software is largest underweight sector for the FIIs. Despite heavy buying, relative out performance of IT sector & addition of Tech Mahindra resulted in an increase in its underweight," the report noted.

Currently, FII holding in Sensex companies is at 8-year high. This is mainly due to consistent buying in index stocks especially, consumers, pharma and private banks.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Those willfully defaulting on loans should be blacklisted by Sebi

    As reported by this newspaper’s Monday edition, the Securities and Exchange Board of India (Sebi) has found merit in the Reserve Bank of India’s s

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Kickstarting technological innovation

One of the key dimensions of global competitiveness is the ...

Kuruvilla Pandikattu SJ

Developing moral, spiritual capacity

Writing in The Huffington Post, Noam Chomsky, professor emeritus, MIT ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture