FPIs remain net buyers for the second consecutive month; infuse Rs 16,464 cr in October
New Delhi, November 3 () Continuing their shopping streak for the second consecutive month, foreign investors pumped 16,464 million net rupees to Indian capital markets in October amid national and global positive signals.
According to the latest depositary data, foreign portfolio investors (FPIs) injected a net amount of Rs 12,475.7 rupees in shares and Rs 3,988.9 rupees in the debt segment during October 1 to 31. This translates into a total net investment of Rs 16,464.6 million rupees in the national capital markets.
Prior to this, the IPF had infused a net crore of Rs 6,557.8 in the Indian capital markets (both equity and debt) in September.
According to Himanshu Srivastava, senior analyst and research manager of Morningstar Investment Adviser India, the measures taken by the government to boost the economy, such as the abolition of the super-rich surcharge, the reduction of corporate taxes and the recapitalization of banks have increased the feeling.
There are also reports that the government is reviewing the current fiscal structure on capital investments, he added.
While these measures may not have an immediate impact, the conclusion for foreign investors is the government's intention to introduce reforms and changes that are necessary for the economy to grow. This has boosted market sentiments and attracted foreign investors, Srivastava said.
However, he warned that these are the first days to celebrate FPI entries since the slowdown in the national economy is evident.
On the global front, a postponement in the US-China trade war has helped increase the appetite for risk among global investors, which has led them to look at emerging markets like India, market experts said. On the future outlook for FPI flows, Harsh Jain, co-founder and chief operating officer of Groww, said: October has seen net inflows in both capital and debt. After the last months of ups and downs, entries have become more consistent over the weeks ... this upward movement is here to stay as long as no major negative economic events occur. SRS ABM ABM