Forcing overseas investors to remain net buyers in Indian markets, FPIs invest over Rs 12,000 cr by November

Mumbai, November 11: Walking the foot steps of the market sentiments that improved following economic reforms by the government, the overseas investors in Novembr have remained net buyers in the domestic capital markets with an investment of over Rs 12,000 crore.

 

The latest depositories data, as released by the MoS, showed that Foreign Portfolio Investors (FPI) infused around Rs 6,434 crore in equities and Rs 5,674 crore in debt segment between first to ninth of this month. "This took the total net investment in the domestic markets, both equity and debt to around Rs 12,108 crore", the statement read.

 

 

The latest inflows come after two consecutive months of foreign investments. In October, FPIs invested around Rs 16,465 crore while in September they had put in Rs 6,558 crore. Measures announced by the government to boost domestic economy and foreign investment like abolishing super-rich surcharge, cutting corporate tax and recapitalisation of banks has, however started to pay dividends.

 

Besides, stock markets touching new all-time highs and better than expected earnings growth would have also encouraged investors but it seems that FPIs are feeling left out and have joined the herd; clearly visible through their halfhearted purchases in Indian markets.

 

FPIs are currently nibbling a few shares just to maintain their asset allocation weights in the portfolio towards Indian equities. Foreign portfolio investment consists of securities and other financial assets held by investors in another country. It does not provide the investor with direct ownership of a company's assets and is relatively liquid depending on the volatility of the market. Along with foreign direct investment, FPI is one of the common ways to invest in an overseas economy. FDI and FPI are both important sources of funding for most economies.