Mumbai: Investment by foreign portfolio investors (FPIs) in Indian debt market touched 6-year high in 2023. FPIs invested Rs 5,950 crore in the country’s debt market in August. The total investment by FPIs in debt market surged to Rs 28,181 crore so far this year. This is the highest amount invested in debt market by FPIs in the past six years. Before this, the month of June saw the highest FPI inflows into debt securities at Rs 10,325 crore.
FPIs have become net buyers of Indian debt for the first time in 4 years. Before this, FPIs were net buyers of Indian debt in 2019. In 2019, invested Rs 24,058 crore into bonds.
Meanwhile, FPIs investment in Indian equities declined in last month. FPIs bought Indian equities worth Rs 12,262 crore in the month of August. August remained the 6th consecutive month of inflows by foreign investors. The net inflow was at Rs 46,618 crore in July, Rs 47,148 crore in June, and Rs43,838 crore in May. Before that, Rs 11,631 crore was infused in Indian equities in April and Rs7,935 crore in March.
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However, in the first 2 months of the current calendar year, FPI investments were in the red. They sold equities worth Rs 28,852 crore in January and Rs 5,294 crore in February. Overall, in 2023 YTD, the FPIs have made inflows worth Rs 1.35 lakh crore.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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