Foreign Institutional Investor (FII) India - Brief Overview
What is FII
Foreign institutional investment signifies investments made by individual investors or companies in foreign lands. In India, entities and funds who are eligible to get registered as FII comprise Pension Funds, Mutual Funds, Insurance Companies, Investment Trusts, Banks, University Funds, Endowments, Foundations, and Charitable Trusts / Charitable Societies. Apart from these,entities proposing to invest on behalf of broad based funds are also eligible to be registered as FIIs. These comprise Asset Management Companies, Institutional Portfolio Managers, Trustees, and Power of Attorney Holders.
Rising FII Activity - India has been witnessing a surge in FII activity since the opening of its capital markets. Owing to its high growth potential, India has become a favourite destination for FII activity. FIIs, convinced of India’s economic progress ad strong corporate earnings, are continuously investing in the country.
At the macro level, India is still among the best macro stories in the world, according to JagannadhamThunuguntla, SMC Global Securities Ltd Strategist and Head of Research
FII Activity – Recent Developments
FII Holdings/FII Trends
International investors increased their stakes in most companies last quarter. FII’s holding was higher in 26 companies while it remained the same in 50 per cent of the 108 companies for which shareholding details were available with stock exchanges as on July 13, 2011.
FII-supported outperformers include Talwalkars Better Value Fitness (TBVF), Lupin, Petronet LNG, GlenmarkPharma, ING Vysya Bank, MRPL and Castrol India.