Foreign Investors Buy Net 1.97 Billion Rupees of Indian Stocks

Overseas investors bought a net 1.97 billion rupees ($39.5 million) of Indian equities yesterday, raising total investments in equities this year to 373 billion rupees, according to the nation’s market regulator.

Foreigners bought 18.7 billion rupees of shares and sold 16.7 billion rupees, the Securities & Exchange Board of India said on its website today. They poured 252.1 billion rupees in February, helping the BSE India Sensitive Index to its second straight monthly gain for the first time since September 2010.

Overseas investors sold a net 274 million rupees of bonds, paring their inflow into debt this year to 260.8 billion rupees, the data show. They put 421 billion rupees in bonds in 2011.

Foreigners have invested 4.817 trillion rupees in stocks and 1.468 trillion rupees in bonds since they were allowed into the country in 1993.

India’s $1.2 trillion stock market, Asia’s fifth-biggest, is influenced by flows from overseas. Inflows from abroad surged to a record in 2010, making the Sensex the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 fueled the biggest annual slump of 52 percent.

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: Arijit Ghosh at aghosh@bloomberg.net

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