FPI INFLOW AT ₹6,310 CRORE IN NOV SO FAR

NEWDELHI:FOREIGN investors have pumped in ₹6,310 crore into Indian capital markets this month so far, after pulling out massive funds in October, on easing crude oil prices and a strengthening rupee.

Of these, most of the funds were infused in the debt market by foreign portfolio investors (FPIS), the latest data with depositories showed.

The recent inflows come after a net outflow of more than ₹38,900 crore in October, which was the steepest withdrawal in nearly two years.

FPIS pulled out over ₹21,000 crore from capital markets (both equity and debt) in September. Before that, they had put in ₹7,500 crore in July and August.

Overseas investors infused ₹923 crore in the equity market during November 1-22, and ₹5,387 crore in the debt market, taking the total to ₹6,310 crore ($862 million), the data showed.

According to experts, an appreciating rupee and fall in oil prices provided a leeway to India’s macros and accordingly influenced FPIS to change their stance towards emerging markets.

“The latest inflow could be attributed to falling in crude prices, recovery in rupee against the dollar and improvement in the liquidity situation,” Himanshu Srivastava, senior analyst manager research, Morningstar Investment Adviser India said.on the global front, escalating trade war tensions between the US and China caused widespread uncertainty in emerging markets. This, coupled with increasing interest rates globally, turned investors risk-averse the world over, which prompted them to look for other attractive and safer alternatives, he added.