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Journalism of Courage
With foreign institutional investors (FII) pumping in a net of Rs 1,38,841 crore as on Thursday,financial year 2012-13 has turned out to be the year with the highest FII inflows. The second best was 2009-10 when FIIs pumped in Rs 1,10,221 crore.
FII inflows,though,have not been able to lift the markets significantly this year. While the BSE Sensex rose to a high of 20,103 in January on the back of strong FII inflows and the reform initiatives that included opening up FDI in multi-brand retail,aviation and broadcasting and its decision to go for a monthly revision in diesel prices,the markets have witnessed a correction in the recent past due to political instability and global worries. The markets witnessed a re-rating on the back of FII inflows but there is a question mark on its sustainability and there can be a further correction, said Pankaj Pandey,head-research at ICICIdirect.
Among domestic institutional investors,mutual funds faced redemption pressures and insurance companies witnessed a drag on their premium collection growth during the year.
For mutual funds the equity AUM for the fiscal went down from Rs 1,74,693 crore in March 2012 to Rs 1,69,647 crore in February 2013.
