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
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