FII inflow in Indian stock markets crosses Rs 60cr

Overseas fund inflows into the Indian stock markets have crossed the Rs 60,000-crore (about $12 billion) mark so far this year.

With investments by foreign investors expected to rise in the coming months, the total overseas fund flow this year could well surpass the highest ever figure recorded in 2007, when India attracted a whopping Rs 70,000 crore (Rs 700 billion).

Foreign institutional investors were gross buyer of shares worth Rs 4,58,371 crore (Rs 4,583.71 billion), whereas they sold equities valued at Rs 3,98,245 crore (Rs 3,982.45 billion), resulting in a net investment of Rs 60,125 crore (Rs 601.25 billion), as per data available with market regulator Securities and Exchange Board of India.

In September alone, foreign investors infused a hefty Rs 18,344 crore ($3.8 billion) in the local share markets.

"FIIs have stashed a lot of money and they don't want to miss the opportunity in a fast growing market like India," Delhi-based Unicon Financial Intermediaries chief executive Gajendra Nagpal said.

The country had witnessed the highest FII inflow in stock markets in the year 2007. That year, India attracted a whopping Rs 70,000 crore inflow in local markets, data since 1999 shows.

However, last year (2008) FIIs pulled out a net Rs 52,000 crore (Rs 520 billion) from stock markets and remained net seller till February this year. The global economic meltdown created a panic among foreign investors, forcing them to pull-out money for safety.

Overseas investors are significant players of the Indian stock markets.

Significantly, so far this year Bombay Stock Exchange's benchmark index Sensex has gained over 77 per cent. On Thursday, the Bombay Stock Exchange benchmark Sensex closed flat after a alternate bouts of buying and selling.

The 30-share barometer, which breached the 17,000 points mark on Thursday, added 7.71 points to close at 17,134.55 points.

However, the stock markets are closed on Friday on account of 'Gandhi Jayanti'.