Mumbai: Foreign portfolio investors (FPIs) invested Rs 22,419 crore in Indian debt markets in February. They also invested over Rs 1,539 crore into Indian equities in February. This came following a net withdrawal of Rs 25,743 crore in January.
In terms of sectors, FPIs were big sellers in financials and FMCG in February. On the debt front, FPIs have been injecting money in the debt markets for the past few months driven by upcoming inclusion of Indian government bonds in the JP Morgan Index.
FPIs infused over Rs 19,836 crore in Indian debt markets 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. 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.
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‘FPIs are steadily increasing their buying in debt market. They have bought debt to the tune of Rs 22,419 crore in February on top of the Rs19,836 crore which they bought in January. This trend of steady debt investment is likely to continue,’’ said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
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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