Through the Porttolio Invesment Scheme (PIS), the foreign hnancial investors (FIls) were allowed to invest in the Indian stock market-the Flls
having good track record register with SEBI as brokers. FIls make investments in markets on the basis of their perceptions ot expected returns from such markets. Their perceptions among other things are infhuenced by :
( i) the prevailinS macro-economic environment
(ii) the growth potential of the economy; and
(iii) the corporate pertormance in competing countries.
Increased FIl in Hows into the country during the year 2012 helped the Indian markets become one of the best pertorming in the world in 2012, recovering sharply from their dismal performance in 2011.
At the end of December 2012, 1,759 FIls were registered with SEBI with their FIl Hows net to India at US$ 31.01 billion.10 These fiows were largely driven by equity inflows (80 per cent of total flows) which remained buoyant, indicating FII confidence in the pertormance of the Indian economy markets in general in particular. and Indian developments The economic in the and political Euro States had their zone area and the United impact world including on markets around India. cliff’ The the resolution in the US of had the fiscal worldwide a positive impact on the including market in India. Further, measures recently reform initiated have by been well the received government by the markets.