FIIs turn net buyers in equities, debt at Rs 439 crore, Rs 63 crore

Mumbai: Foreign institutional investors (FIIs) turned net buyers in both equities and debt at Rs 439.2 crore and Rs 63.3 crore, respectively, during the trading week ended 7 February 2003.

FIIs have been positive about the Indian equity markets and have been net buyers since the beginning of the new year. FIIs pumped in a record Rs 789 crore in January 2003 in the equity markets.

“Indian equity markets are definitely more attractive than other Asian and European markets as the profit to earnings (P/E) ratio of Indian equities are the lowest compared to other markets. Also, in the run-up to the budget, the sentiment is high and they expect a bull-run,” says Mayur Mehta, a market analyst.

FIIs were net buyers in equities on all trading days and four days in the debt segment. Foreign funds bought and sold equities worth Rs 321 crore and Rs 172.6 crore, respectively, on 3 February, thus netting purchases of Rs 148.4 crore.

They were also net purchasers to the tune of Rs 133.3 crore on 5 February and Rs 69.2 crore on 7 February. On the debt front, they were net buyers at Rs 50.1 crore on 6 February while netting sales of Rs 11.5 crore on 4 February but did not transact any activity on two trading days.

Mutual funds (MFs), too, were net buyers in equities at Rs 21.43 crore while netting outflows at Rs 118.4 crore in the debt market in the first trading week of February, according to the data available with the Securities and Exchange Board of India.