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FPI net inflow kitty at Rs 10,000 crore in March so far
Foreign investors pumped in over Rs 10,000 crore in the Indian capital markets this month so far and the trend is expected to continue in coming weeks following the BJP`s stunning show in the assembly elections.
New Delhi: Foreign investors pumped in over Rs 10,000 crore in the Indian capital markets this month so far and the trend is expected to continue in coming weeks following the BJP's stunning show in the assembly elections.
The latest net inflow comes following a net investment of Rs 15,862 crore in the capital markets -- equity and debt -- last month. Prior to that, FPIs had pulled out a total of over Rs 80,000 crore during October-January.
According to depository data, foreign portfolio investors (FPIs) infused a net sum of Rs 9,628 crore in equities during March 1-10 and another Rs 660 crore in the debt segment, translating into a combined inflow of Rs 10,288 crore (USD 1.54 billion).
Investors expect the central government to continue with their bold reformist policies in their near future following a huge win for the NDA in the assembly elections of UP and Uttarakhand.
"It is positive for FPI sentiments and should result in higher FPI inflows as FPIs get more bullish about the continuance of the reforms process in the country," Bajaj Capital Senior V-P and Head Investment Analytics Alok Agarwala said.
"However, this is not the only factor that drives FPI sentiment. Events happening across the globe, financial as well as geopolitical, are much bigger factors. The US Federal Reserve policy, interest rate trajectory in the US, growth in China, monetary policies in the EU and Japan and commodity prices (mainly oil) are equally significant in shaping FPI flows," he added.
So far this year, FPIs have invested Rs 18,354 crore in equities and Rs 4,301 crore in the debt, taking the total inflow to Rs 22,655 crore.