FPIs net inflow at Rs18,000 cr in Indian markets in Jan so far
This comes following an outflow of over Rs 3,500 crore by FPIs from the capital markets (equity and debt) in December
Foreign investors have pumped in a staggering USD 3 billion (nearly Rs 18,000 crore) into the country's capital markets this month so far on expectation of recovery in corporate earnings and attractive yields.
This comes following an outflow of over Rs 3,500 crore by foreign portfolio investors (FPIs) from the capital markets (equity and debt) in December, depositories data showed.
"The inflow in the current month can be attributed to anticipation of earnings recovery and attractive yields which is expected to further strengthen inflow from foreign investors in current financial year," said Dinesh Rohira, CEO of 5nance, an online platform providing financial planning services.
According to the depositories data, FPIs infused a net amount of Rs 11,759 crore in equities and Rs 6,127 crore in debt during January 1-25 -- translating into net inflows of Rs 17,866 crore.
In the entire 2017, FPIs put in a collective amount of Rs 2 lakh crore in equity and debt markets.
Quantum MF Fund Manager-Fixed Income Pankaj Pathak, however, believes that FPIs may not be able to repeat this showing in 2018 as withdrawal of liquidity and rate hikes in developed economies pick up.
"Given 2019 general election would not be far, the expectation of some other economic reforms from the government would be high. But the major for FPIs going ahead would be to see growth coming back in the domestic economy, which has not yet picked up contrary to the expectation.
"In a nutshell, India must compete with other emerging markets to attract higher chunk of FII flows. Hence, we must be better poised in terms of risk reward profile compared to them," Morningstar India Senior Analyst Manager (Research) Himanshu Srivastava said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
10:14 AM IST