FII buying of Indian stocks on the rise

WASHINGTON, JAN. 26. Foreign buying of Indian stocks is exploding with foreign institutional investors (FIIs) buying $748.1 million of stocks as of January 23, the Wall Street Journal reported today.

According to the paper, buying of Indian stocks by foreign institutional investors means that in less than four weeks they spent roughly half of what they spent all of last year.

"It is shaping up to be one of the strongest months for foreign inflows since 1993, the year India let outsiders buy shares. The buying, said the paper, reflects a dichotomy in the Indian economy. Globalisation may end up helping the nation's software companies benefit from a U.S. slowdown.

The slowdown may heighten demand for their variety of low-cost outsourcing. At the same time, "a legacy of staunch protectionism gives the rest of the economy some shelter from outside pressures."

Foreign money, the paper pointed out, is flowing into old economy stocks too, particularly construction because India needs to build its infrastructure.

- PTI

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