Overseas Funds Extend Their Record Purchases of Indian Stocks This Year

Overseas investors purchased a net 4.63 billion rupees ($102.1 million) of Indian shares yesterday, taking this year’s record inflows in equity to 1.333 trillion rupees, the Securities & Exchange Board of India said.

Investors bought 41.27 billion rupees of shares and sold 36.63 billion rupees, data from the market regulator showed. They sold a net 97 million rupees of bonds, reducing their debt purchases this year to 445.5 billion rupees. Stock purchases this year include 382 billion rupees from the primary market.

Foreign investors have placed 4.47 trillion rupees in equities and 768.1 billion rupees in bonds since they were allowed into the country in 1993, today’s report showed. The previous record was in 2009 when flows reached 834.2 billion rupees, sparking the biggest rally in 18 years. Funds withdrew a record 530 billion rupees from stocks in 2008, setting off the worst annual slump.

The regulator provides data on shares bought and sold by large investors, including trades in the primary and secondary markets, with a delay of at least a day.

To contact the reporter on this story: Paresh Jatakia in Mumbai at pareshj@bloomberg.net

To contact the editor responsible for this story: Stephen Foxwell at sfoxwell@bloomberg.net

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