News / Asia

Foreign Investors Pour Billions of Dollars into Indian Stocks

An Indian stock broker reacts while looking at Sensex stock index at brokerage firm in Mumbai, India, 13 Sep 2010
An Indian stock broker reacts while looking at Sensex stock index at brokerage firm in Mumbai, India, 13 Sep 2010
TEXT SIZE - +

India's stock markets have attracted a record flow of foreign investment in recent months. The magnet for investors is an economy that has recovered from the global financial crisis.     

Two years ago, India's main stock index, the Sensex, lost more than one-half its value as the global financial downturn prompted foreign investors to pull nearly five billion dollars out of the country.

But the Sensex has gained nearly 20 percent this year and is trading close to the levels prior to the financial crisis. 

Rajesh Jain, a stock market analyst in Mumbai, attributes this to the money being poured into Indian stocks once again by foreign investors, also known as FII's.     

"The markets have been driven by one single big trigger which has been sustained FII buying, and we have seen that continue through all of three, almost four months. We have seen investments by FII's of all hues and colors," said Jain.

Foreign investors have put nearly $25 billion into Indian stocks so far. That is nearly double the amount they invested in the same period last year.    

Financial analysts say international investors are investing in emerging markets like India to take advantage of higher growth and better financial returns compared to developed countries, which still face economic challenges.

India's economy is among the world's fastest growing, and has emerged virtually unscathed from the financial crisis.

The government estimates that India's economy will grow by eight and one-half percent this year. The International Monetary Fund is even more optimistic. In a recent report, it said economic growth could reach nine percent in 2010 due to growing consumer demand.

The stock market rally is not just helping private sector companies. The Indian government announced Monday that it raised about $3.5 billion by selling a 10 percent stake in state-owned Coal India, the world's largest coal mining company.

However while stock markets have attracted record investment, direct investments by foreign investors in businesses and infrastructure projects have been more sluggish compared to last year.

You May Like

Multimedia Relatives of South Korean Ferry Victims Fire at Authorities

46 people are confirmed dead, but some 250 remain trapped inside sunken ferry More

War Legacy Haunts Vietnam, US Relations

$84 million project aims to clean up soil contaminated by Agent Orange More

Wikipedia Proves Useful for Tracking Flu

Technique gave better results than Center for Disease Control (CDC) and Google’s Flu Trends More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Ukraine, Russia, United in Faith, Divided in Politicsi
X
Michael Eckels
April 19, 2014
There is a strong historical religious connection between Russia and Ukraine. But what role is religion playing in the current conflict? In the run-up to Easter, Michael Eckels in Moscow reports for VOA.
Video

Video Ukraine, Russia, United in Faith, Divided in Politics

There is a strong historical religious connection between Russia and Ukraine. But what role is religion playing in the current conflict? In the run-up to Easter, Michael Eckels in Moscow reports for VOA.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid