FII investment crosses $11-bn mark in 2013

Foreign institutional investors (FIIs) may well have slowed the pace of investments in the Indian equity market in the recent past, but their net inflows in the current calendar year has crossed yet another psychological mark. The cumulative inflows of foreign investors in the current calendar year (CY13) has crossed the $11-billion mark.

FIIs have been net buyers at $11.13 billion in CY13, which saw both Sensex and Nifty losing around 0.5 per cent each.

The plunge in global gold and crude oil prices is seen bringing in some respite for India, given the importance these commodities have on the country’s current account and fiscal deficits.

India still figures among the top investment destinations if one compares the flows vis-a-vis other Asian economies.

According to Bloomberg, Japan with $64.21 billion of FII inflows is the only Asian country that has seen higher flows compared to India in CY13.

While South Korea has seen outflows of $4.31 billion in CY13, Indonesia ($1.94 billion), Philippines ($1.25 billion) and Taiwan ($1.46 billion) have all witnessed marginal amount of foreign flows.