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Foreign institutional traders have purchased shares value over Rs 1.50 lakh crore up to now this yr.
Indian financial system’s worst contraction on report amid coronavirus pandemic didn’t deter the international institutional traders from shopping for equities within the nation’s markets albeit they poured report quantity in a pandemic-hit yr. So far this yr, the international institutional traders have purchased shares value over Rs 1.50 lakh crore ($20.59 billion) knowledge from National Securities Depository Limited (NSDL) confirmed. This was the highest-ever cash invested in Indian inventory markets by FIIs ever in a calendar yr and highest since 2010 once they invested Rs 1.33 lakh crore in fairness markets.
Buying by FIIs have propelled the Indian fairness benchmarks – Sensex and Nifty to new all-time highs.
FII Investment Trend
| Calendar yr | FII funding quantity (in Rs crore) |
|---|---|
| 2002 | 3,629.6 |
| 2003 | 30,458.8 |
| 2004 | 38,965.1 |
| 2005 | 47,181.1 |
| 2006 | 36,539.7 |
| 2007 | 71,486.5 |
| 2008 | -52,987 |
| 2009 | 83,423.9 |
| 2010 | 1,33,266 |
| 2011 | -2,714.3 |
| 2012 | 1,28,359.8 |
| 2013 | 1,13,136 |
| 2014 | 97,054 |
| 2015 | 17,808 |
| 2016 | 20,568 |
| 2017 | 51,252 |
| 2018 | -33,014 |
| 2019 | 1,01,122 |
| 2020 | 1,52,455* |
Source: NSDL
*FII funding until December 16, 2020
Cheap inventory valuations within the aftermath of Covid-related lockdown and gush of liquidity infused by central banks helped international traders pour cash into Indian shares, analysts mentioned.
“Cheap valuations and easy liquidity because of central banks opening their purses across the globe helped India get highest foreign investment in Asia,” AK Prabhakar, head of analysis at IDBI Capital, informed NDTV.
Labour and farm reforms and production-linked incentive schemes introduced by the federal government beneath the Atma Nirbhar Bharat Scheme additionally strengthened international traders’ confidence for Indian equities.
“Post Covid FIIs feel India will have a better advantage and India will gain market share in many sectors. Reform process like farm and labour reforms and PLI scheme in many sectors also makes FIIs bullish on India,” Mr Prabhakar added.
Not solely international institutional funding, the nation additionally obtained big international direct funding (FDI) flows through the pandemic time.
At the peak of the COVID-19 pandemic, through the first 9 months of the yr, the nation attracted $40 billion in international direct funding which was up by about 13 per cent, Commerce and Industry Minister, Piyush Goyal mentioned.
FDIs into India have been repeatedly rising because the nation has one of the crucial facilitative insurance policies to draw abroad traders, Mr Goyal added.
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