Mumbai: Foreign portfolio investors (FPIs) continued to be buyers in the Indian markets. FPIs invested in both debt and equities. According to data released by the National Securities Depository Ltd (NSDL), FPIs purchased Rs 38,098 crore worth of Indian equities. The y invested Rs 13,223 crore so far this month in debt market. The total inflow stands at Rs 51,542 crore as of March 22, taking into account debt, hybrid, debt-VRR, and equities.
‘An interesting feature of the foreign portfolio investment in India this fiscal is the steady growth in debt investment in sharp contrast to the volatile equity investment. This rising trend in debt investment is evident in March, too, with inflows of Rs 13,223 crore in debt through 22nd March,’’ said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The main reason for the sustained FPI flows into debt is the inclusion of Indian bonds in the JP Morgan EM Bond Fund and Bloomberg Bond Index which is expected to bring investment of around $25 billion. This investment will begin only by June 2024.
Also Read: India’s coal production crosses 1 billion tone
Foreign institutional investors (FIIs) were net sellers in Indian markets as outflows were higher than net investments last week. Inflows led by domestic institutional investors (DIIs) continued which balanced the outflows by foreign investors. FIIs were sellers for four out of five sessions this week and the net outflow stands at Rs 83,65.53 crore, while DIIs were buyers for all sessions, with a total investment of Rs 19,351.62 crore, according to stock exchange data.
The inflow into Indian equities stood at Rs 1,539 crore and the debt market investment rose to Rs 22,419 crore in February on top of the Rs 19,836 crore bought in January.
For the entire calendar year 2023, FPIs bought Rs 1.71 lakh crore in Indian equities and the total inflow stands at Rs 2.37 lakh crore taking into account debt, hybrid, debt-VRR, and equities. FPIs’ net investment in Indian debt market stands at Rs 68,663 crore during 2023.
Overall, only four months in 2023–January, February, September, and October- saw net FPI outflows from Indian equities. May, June, and July each recorded FPI inflows above Rs 43,800 crore.
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.
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.
Post Your Comments