FIIs gain over $3.8 bn as Moody’s, Goldman lift Indian equities

Foreign funds that have pumped in over $19 billion in Indian equities so far this year, got a big boost with the combined opinion of rating agency Moody's and Wall Street banking giant Goldman Sachs lifting market sentiment in India.

After pulling out $358 million (Rs2,714 crore) from Indian stocks in 2011, FIIs came back to the Indian market this fiscal with net investments of $19.08 billion, the second biggest investments in a singly calendar year so far.

FIIs bought shares worth Rs5,80,183 crore and sold equities worth Rs4,80,778 crore so far in 2012, leaving a net inflow of Rs99,406 crore ($19.08 billion), according to data available with market regulator Securities and Exchange Board of India (SEBI).

This is the second highest net inflow by FIIs in a single calendar year since their entry into Indian capital markets in 1992. In 2010, overseas investors had made net investments of about $29 billion (about Rs1,33,266 crore).

The 30-share BSE sensitive index, Sensex vaulted 328.08 points (or 1.74 per cent) to 19170.16 points while the 50-share NSE index Nifty was up 96.45 points (or 1.68 per cent) at 5823.90.

The Sensex has gained nearly 20 per cent so far this year, allowing for a minimum 20 per cent gain for the foreign investors as well. FIIs that have $19.08 billion invested in Indian stocks so far this year, might gain over $3.8 billion (Rs20,845 crore).