January 2012 emerged as the Best Month in Terms of Foreign Fund flows since November 2010

As per data published by the market regulator SEBI on 27 January 2012, net FII buying crossed the $2-billion mark in January 2012 making January the best month in terms of foreign fund flows since November 2010. FIIs had recorded a net outflow of $358 million in 2011. Inflows in January 2012 is in sharp contrast to over $1 billion outflow in January 2011. The surge in inflows also helped strengthen the Indian rupee which closed above the 49-level after nearly 10 weeks.

January’s inflow figure, however was less than a third of the monthly inflow record set in October 2010, when $6.4 billion was pumped in by foreign fund managers. In October 2010 the figures were further pumped through the hugely successful Coal India IPO.

SEBI’s data showed a net FII inflow of $1779 million. Institutional trading data on the BSE showed net inflow figure on 27 january at Rs 1240 crore, which translates to $252 million. The aggregate of the two is slightly over the $2 billion mark.