Foreign portfolio investors (FPIs) have infused a net sum of Rs 5,072 crore into the Indian capital markets in October so far amid the government’s efforts to revive domestic demand.
The month before, FPIs had invested a net Rs 6,557.8 crore in the domestic capital markets (both equity and debt). This came following net outflows in July and August.
As per the latest depositories data, foreign investors put in a net sum of Rs 4,970 crore in equities and a net Rs 102 crore in the debt market during October 1-18, taking the cumulative net investment to Rs 5,072 crore.
Reacting to the inflow of funds in October, head of research at Samco Securities, Umesh Mehta said, “The worst seems to be behind us and markets have started to discount the forward-looking Budget and revival of consumption.”
“The government’s efforts to revamp domestic demand by increasing DA, cutting corporate taxes, recapitalisation of PSU banks, strategic disinvestments have all contributed in changing FPIs’ stance,” he added.