Foreign institutional investors have put in a record-busting $9 billion in the India markets, including both equity and debt markets, during April 2003 to March 10, 2004.

Going by the commitments already made in the various PSU divestments, the finally tally may well exceed $10 billion. The previous best was in 1994, when FIIs put in $2.992 billion.

With this surge in investment interest, the total FII inflows over the years into the Indian equity markets are set to cross the $25 billion mark this month.

Data posted on the Securities and Exchange Board of India website shows FII net inflows in the equity and debt markets aggregated at $24.10 billion as on March 10, 2004. If the FIIs have actually committed $1 billion to the PSU offers for sale, then the final tally may well cross $25 billion.

Going by initial subscription estimates put out by merchant bankers, almost 50 per cent of the offer size of the six PSUs was reserved for qualified institutional buyers, which has been subscribed fully in each case.

This means, of the total offer size of Rs 14,000 crore (Rs 140 billion), QIBs (largely FIIs) had almost Rs 7,000 crore (Rs 70 billion) worth of shares reserved for them. This money will come into the reporting system when the shares are finally allotted.

In rupee terms, FII investments in the domestic equity and debt markets aggregated to Rs 1,02,615 crore (Rs 1,026.15 billion) this fiscal, with FIIs making purchases of Rs 4,32,751 crore (Rs 4,327.51 billion) and sales of Rs 3,30,136 crore (Rs 3,301.36 billion). Their investment in equity market is at Rs 99,576 crore (Rs 995.76 billion) and another Rs 3,039 crore (Rs 30.39 billion) in the debt markets.

FIIs' investment in Indian equities is largely centred around the Sensex and S&P CNX Nifty stocks.

Published data on the aggregate shareholding pattern of companies as in December 2003 shows that FII investments in the Nifty and Sensex stocks are currently valued at Rs 1,19,546 crore (Rs 1,195.46 billion). FIIs have the single largest investment in Reliance Industries, where they hold a 22.10 per cent stake valued at Rs 17,600 crore (Rs 176 billion).

In percentage terms, FIIs have the largest holding in housing major HDFC where they hold a 60.74 per cent stake, valued at Rs 9,651 crore (Rs 96.51 billion). FIIs hold a 54.48 per cent stake in Satyam Computer [valued at Rs 5,069 crore (Rs 50.69 billion)], 45.25 per cent in ICICI Bank [Rs 8,052 crore (Rs 80.52 billion)], 42.32 per cent in Infosys Technologies [Rs 13,787 crore (Rs 137.87 billion)], 39.19 per cent in Zee Telefilms [Rs 1,989 crore (Rs 19.89 billion)], 27.36 per cent in HDFC Bank [Rs 2,938 crore (Rs 29.38 billion)], 25.58 per cent in Hero Honda [Rs 2,534 crore (Rs 25.34 billion)], 25.03 per cent in Dr Reddy's Laboratories [Rs 2,008 crore (Rs 20.08 billion)] and 25 per cent in Digital GlobalSoft [Rs 695 crore (Rs 6.95 billion)].

A record

• The previous best was in 1994, when FIIs put in $2.992 billion.
• The total FII inflows over the years into the Indian equity markets are set to cross the $25 billion mark this month.