Mumbai: Foreign Portfolio Investors (FPIs) invested Rs 18,589 crore so far this month (till February 23) in Indian debt markets. The upcoming inclusion of Indian government bonds in the JP Morgan Index influenced investors.
FPIs infused over Rs 19,836 crore in January, making it the highest monthly inflow in more than six years. This was the highest inflow since June 2017, when they infused Rs 25,685 crore.
‘With introduction of India in global bond indices this year, Indian debt inflows should get steady flows going ahead. Also, further front-loading before actual inclusion in June this year is also expected. This is also in line with long-term aim to deepen our underdeveloped debt-markets,’ Kislay Upadhyay, smallcase Manager & Founder Fidelfolio, said.
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With this, the total investment by FPIs reached over Rs 38,426 crore in 2024. They have been injecting money in the debt markets for the past few months. FPIs infused Rs 18,302 crore in the debt market in December, Rs 14,860 crore in November, and Rs 6,381 crore in October.
On the other hand, FPIs pulled out Rs 424 crore from equities during the period under review. Before this, they withdrew a massive Rs 25,743 crore in January.
Indian equities witnessed a net outflow of Rs 1.21 lakh crore by FPIs in 2022. Before the outflow, FPIs invested money in the last three years. FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 lakh crore in 2020, and Rs 1.01 lakh crore in 2019. FPIs took out funds worth Rs 15,910 crore in 2022, Rs 10,359 crore in 2021, and Rs 1.05 lakh crore in 2020 from debt markets.
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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