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Foreign portfolio investors withdraw Rs 17,000 crore from Indian market in May

Mumbai: Foreign portfolio investors (FPIs) sold over Rs 17,000 crore worth of Indian equities in May. Data released by  National Securities Depository Ltd (NSDL) showed this. FPIs bought equities worth over Rs 1.08  lakh crore and sold over Rs 1.26 lakh crore till May 10.

This came after FPIs dumped equities worth Rs 8,700 crore in April. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February.

Meanwhile, Foreign Portfolio Investors (FPIs) have made a net investment of around Rs 2.08 lakh crore in the Indian equity markets and Rs 1.2 lakh crore in the debt market in 2023-24 fiscal year. Collectively, they infused Rs 3.4 lakh crore into the Indian capital market.

Also Read: India’s Index of Industrial Production grows 5.8% in FY24 

In 2022-23, Indian equities witnessed a net outflow of Rs 37,632 crore by FPIs. Before this, FPIs pulled out a massive Rs 1.4 lakh crore. In 2020-2021, FPIs made a record investment of Rs 2.74 lakh crore.

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.

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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