Mumbai, Dec 4 () : For the first time after 1993, Indian stocks saw investments touch the $20 billion. These investments from foreign institutional investors (FIIs) in Indian equities in 11 months is likely to cross $20 billion.
According to stock markets, this is the second time it has seen a high after India threw open the stock market in 1993 for global investors. Reason for the flow of investments is said to be investors finding Indian stocks as growing and a weak rupee against the dollar. Funds were available following the release by Central banks in Europe and the US.
A drop of 3.27% in rupee saw that investors trading in dollars could buy more stocks. In 2010, global funds in equities were $29.32 billion, the first high and now on Friday last it closed at $20.10 billion according to data from Securities and Exchange Board of India(SEBI).
Analysts say that in September when there was a change of guard in the Finance Ministry and some strong measures taken saw FII investments flow in. Of the present $20.10 billion, two thirds came after September. Relaxing foreign investment norms in aviation and retail and equities gaining 25% this fiscal made India a strong emerging market.
Sensex of BSE marked a rise by 25.14% and Nifty of NSE rose to 27.12% up to November. Among the emerging markets in Asia, Sensex stands in the fifth spot and the Nifty occupies the fourth spot.
Pakistan’s stock market KSE-100 has shown a dramatic rise of 46.25% in the current year after its currency dropped 6.9% against the dollar.
The Philippine’s stock market PCOMP index leads with 30.3% even though its Peso gained 7.2% against the dollar. Thailand comes a close second with SET index rise to 29.9%,which is ranked third-best emerging market despite baht gaining 2.9% against the dollar.
FII holdings touched a high after six years in Nifty companies while it touched a low in domestic investments.