Overseas investors bought a net 2.83 billion rupees ($55 million) of Indian equities yesterday, taking their total investments in stocks this year to 445.7 billion rupees, according to the nation’s market regulator.
Foreigners bought 24.8 billion rupees of shares and sold 22 billion rupees, the Securities & Exchange Board of India said on its website. They sold a net 2.25 billion rupees of bonds, paring their flows into debt this year to 190.6 billion rupees, the data show.
The BSE India Sensitive Index has risen 13 percent this year as foreigners poured record amounts of money into local shares even as costlier credit slows profit growth, oil costs remain high and the government struggles to tackle a fiscal gap.
Foreigners have invested 4.89 trillion rupees in equities and 1.4 trillion rupees in bonds since they were allowed into the country in 1993.
India’s $1.2 trillion stock market is influenced by flows from abroad. Offshore funds pulled out 27.1 billion rupees from local equities last year amid Europe’s debt crisis. That led to a 25 percent decline in the Sensex, the measure’s second worst annual loss, and sent the rupee to an all-time low.
Inflows surged to a record 1.33 trillion rupees in 2010, making the Sensex the best 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.