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Wednesday, July 21, 1999

Sustained bull run attracts 19 more foreign funds into domestic market 

S Muralidhar and Parul Monga  
Mumbai, July 20: The sustained rally in the markets has attracted a large number of new foreign institutional investors to the Indian shores. During the last few weeks as many as 19 new FIIs have registered with the Securities and Exchange Board of India.

Of this, four FIIs were registered during the month of July coinciding with the Sensex's run-up to its all-time high. Fidelity of the UK alone has registered six different funds with the Indian market regulator. The six funds are Fidelity Global Privatisation Fund, Emerging Markets Fund, South East Asia Fund, Privatisation Plus Fund, Pacific Fund and Fidelity Investments International.

Of the 19 FIIs, seven are based in UK and five in the US. Laidlaw Global Securities, Credit Suisse Asset Management, New Hampshire Retirement System, The Endeavour Series Fund and Teachers Advisors Fund are based in the US.As of date, 469 FIIs are registered with the FIIs. Some of the new FIIs are also based in Luxembourg including AGF World Fund, Lombard Odier Invest andthree of the Fidelity funds mentioned above. Besides, Old Mutual Asset Managers, South Africa and National Australia Asset Management Limited, Australia also plan to invest in the Indian market.

During July alone, net FII inflows crossed the Rs 1100-crore mark. So far in the current year, net FII investments to the tune of Rs 4,700 crore have been pumped into the Indian market. This has driven the BSE Sensex to an all-time high. On July 13 alone the net FII investment was Rs 411 crore, which is the highest net investment in a single day. Market players attribute part of this to the inflows coming from new FIIs.

While the market expects a correction as witnessed in the 100-point drop in Sensex on Tuesday, brokers say the liquidity inflows will be sustained though at a marginally lower level. New FIIs, especially the late entrants, will provide support to the market at every fall picking up select stocks at lower levels.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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