INSUBCONTINENT EXCLUSIVE:
Foreign institutional investors have bought shares worth over Rs 1.50 lakh crore so far this year.Indian economy's worst contraction on
record amid coronavirus pandemic did not deter the foreign institutional investors from buying equities in the country's markets albeit they
poured record amount in a pandemic-hit year
So far this year, the foreign institutional investors have bought shares worth over Rs 1.50 lakh crore ($20.59 billion) data from National
Securities Depository Limited (NSDL) showed
This was the highest-ever money invested in Indian stock markets by FIIs ever in a calendar year and highest since 2010 when they invested
Rs 1.33 lakh crore in equity markets.Buying by FIIs have propelled the Indian equity benchmarks - Sensex and Nifty to new all-time
highs.Calendar yearFII investment amount (in Rs
crore)20023,629.6200330,458.8200438,965.1200547,181.1200636,539.7200771,486.52008-52,987200983,423.920101,33,2662011-2,714.320121,28,359.820
131,13,136201497,054201517,808201620,568201751,2522018-33,01420191,01,12220201,52,455*Source: NSDL*FII investment till December 16,
2020Cheap stock valuations in the aftermath of Covid-related lockdown and gush of liquidity infused by central banks helped foreign
investors pour money into Indian stocks, analysts said."Cheap valuations and easy liquidity because of central banks opening their purses
across the globe helped India get highest foreign investment in Asia," AK Prabhakar, head of research at IDBI Capital, told
TheIndianSubcontinent.Labour and farm reforms and production-linked incentive schemes announced by the government under the Atma Nirbhar
Bharat Scheme also reinforced foreign investors' confidence for Indian equities."Post Covid FIIs feel India will have a better advantage and
India will gain market share in many sectors
Reform process like farm and labour reforms and PLI scheme in many sectors also makes FIIs bullish on India," Mr Prabhakar added.Not only
foreign institutional investment, the country also received huge foreign direct investment (FDI) flows during the pandemic time.At the
height of the COVID-19 pandemic, during the first nine months of the year, the country attracted $40 billion in foreign direct investment
which was up by about 13 per cent, Commerce and Industry Minister, Piyush Goyal said.FDIs into India have been continuously growing as the
country has one of the most facilitative policies to attract overseas investors, Mr Goyal added.
