FPIs net buyers for second month in Oct
NEWDELHI: Continuing their buying streak for the second straight month, overseas investors pumped in a net ₹16,464 crore into the Indian capital markets in October amid positive domestic and global cues.
As per latest depositories data, foreign portfolio investors (FPIs) pumped in a net amount of ₹12,475.7 crore into equities and ₹3,988.9 crore into the debt segment during October 1-31. This translates into a total net investment of ₹16,464.6 crore in the domestic capital markets.
Prior to this, FPIs had infused a net ₹6,557.8 crore into the Indian capital markets (both equity and debt) in September.
According to Himanshu Srivastava, senior analyst and manager research at Morningstar Investment Adviser India, the measures taken by the government to boost the economy such as abolishing super-rich surcharge, cutting corporate tax and recapitalisation of banks have boosted sentiment.
There also reports of the government reviewing the current tax structure on equity investments, he added.
“While these measures may not have an immediate impact, the takeaway for foreign investors is the government’s intent to bring reforms and changes which are necessary for the economy to grow. This has boosted market sentiments and attracted foreign investors,” Srivastava said.
However, he cautioned that these are early days to celebrate the FPI inflows as “slowdown in the domestic economy is evident.” On the global front, a reprieve in the US-China trade war has helped increase risk-appetite among global investors.