The net investment by FIIs in the equities has been the highest since the month of March at US$3.05 billion. Pushed by the stimulus in the banking space in the form of Rs.2.11 lakh crore recapitalization plan of the government plus the Moody's sovereign rating up has augured well for the Indian equities.
Now, the investor class is quite cautious with eye on US Federal Reserve Policy take and a few important events lined up in the Indian story such as the Gujarat Elections, oil prices and the not so far off Union Budget which is due to be announced by the Finance Minister on February 1.
In entirety, the year has seen a net investment of $8.86 billion from foreign institutional investor class in the Indian equities market.
As per the Bloomberg data, in contrast to heavy sell-off in Korea, Taiwan and Indonesia, FIIs have seen a huge net inflow in the last one week which stands at US$489.4 million.