FIIs net investment -Rs 264 cr in the domestic stock markets in Aug09

FIIs have made a net investment of just Rs 264 cr in the domestic stock markets in Aug 09.Analysis of FII actions in the Indian stock markets shows that overseas investors are, so far in August, a net purchaser of domestic stocks worth Rs 264.6 cr. FIIs made a gross purchase of shares worth Rs 22,821.2 cr, while they sold equities valued at Rs 22,556.6 cr, resulting in a net investment of just Rs 264.6 cr, according to the data available with market regulator Securities and Exchange Board of India (SEBI).

However, it seems that during the period under review, the Indian debt market became a preferred choice for overseas investors as the segment attracted a net investment of nearly 2,200 cr. FIIs, so far this month, have made a gross buy of Rs 4,939.90 cr in the debt market, while they pulled out a gross Rs 2,742 cr from the sector, which resulted in a net investment of Rs 2,197.90 cr, according to the SEBI’s data.

In recent sessions, Indian stock markets witnessed unstable trading and during the same period, the BSE’s benchmark index fell 1.65%.According to the SEBI data, so far this year, FIIs' inflow in stock markets has crossed Rs 35,000 cr.However, this year in the debt market, they have still not turned a net buyer. Till now, they are net sellers of debt instruments worth Rs 1,145 cr.