FII’s Net Buy in Indian Markets in FY09.

On December 23, both the Market’s (SENSEX & NIFTY) closed higher by more than 3%. SENSEX closed 539.11 points higher at 17231.11 and NIFTY closed 158.75 points higher at 5144.60. This was because of the Net Buy by FII’s is Rs. 225 cr. We have seen an increasing participation by the FII’s in December month till now. The Net Buy of FII’s in December is Rs. 6630.20 Cr.

Below figure shows the day wise Gross Purchase, Gross Sales and Net Purchase / Sales by FII in December 2009.

 
We have seen high buying by FII’s (Foreign Institutional Investor) in our Markets in 2009. Both SENSEX and NIFTY have grown by more than 75% in this year. This is because the FII’s have invested lots of money in Indian Markets in 2009. In the year 2009 the Net FII buy is Rs. 75000 cr.


At the same time the risk is very high since holdings by Foreign Investors is high. Thus our Market’s dependency on Foreign Markets increase as if the Foreign Markets Increase we can see increase participation of FII’s in Indian Markets and if they fall, the FII will remove their holdings from Indian markets to recover their losses.

Below figure shows the month wise Gross Purchase, Gross Sales and Net Purchase / Sales by FII in 2009.

 
Table Source: moneycontrol.com.