Investments by foreign institutional investors (FIIs) in 2003 crossed the $7 billion mark. This time the total investments beat the previous high of $3 billion recorded in 1995.

The positioning of India as one of the most promising emerging markets in the world, and the performance of the corporate sector were among the main reasons for frenzied buying by foreigners.

Naina Lal Kidwai, vice chairman & managing director of HSBC Securities and Capital Markets (India) Pvt Ltd, said that FIIs were buying India's growth story and this eventually percolated down to stocks. "The underlying story is very good and with a GDP growth of seven per cent forecast, the country is attractive to any foreign investor.'' Already FIIs have pumped $914 million in December which is the second highest monthly inflow so far.

Brokers say a number of FIIs registered with Sebi but inactive until recently have also started buying as their clients want the India presence felt in their portfolios.

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Source: Times News Network
www.timesofindia.com