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Foreign Investors Buy Net 1.69 Billion Rupees of Indian Stocks

Overseas investors bought a net 1.69 billion rupees ($31 million) of Indian stocks yesterday for the first time in five days, raising total investment in equities this year to 407 billion rupees, data from the regulator show.

Foreigners bought 33.3 billion rupees of shares and sold 31.6 billion rupees, the Securities & Exchange Board of India said on its website today. They purchased a net 10.5 billion rupees of bonds, taking total flows into debt this year to 210 billion rupees, the data show.

Offshore funds sold a net 3.47 billion rupees of shares last month and 11.1 billion rupees of shares in April after being net buyers in each of the first three months of 2012. They put 421 billion rupees in bonds in 2011.

Foreigners have invested 4.851 trillion rupees in stocks and 1.417 trillion rupees in bonds since they were allowed into the country in 1993.

India’s $1.1 trillion stock market, Asia’s fifth-biggest, is influenced by flows from overseas. Flows surged to a record in 2010, making the BSE India Sensitive Index (SENSEX) the top performer among the world’s top 10 markets. The largest-ever outflow in 2008 led 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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