After Sept pull out, FPIs infuse Rs 48 bn on rupee rise, oil prices drop

Foreign investors have pumped in nearly Rs 48 bn into the Indian capital markets in the last five trading sessions, after pulling out hefty funds in October, amid cooling global crude oil prices and rising rupee.

The recent infusion comes following a net outflow of more than Rs 389 bn in October, which was the steepest withdrawal in nearly two years.

FPIs had pulled out over Rs 210 bn from the capital markets (both equity and debt) in September. Before that, foreign investors had put in Rs 75 bn in July and August.

According to depositories data, foreign portfolio investors (FPIs) infused Rs 2.15 bn in the equity markets during November 1-9, and Rs 45.57 bn in the debt market, taking the total to Rs 47.72 bn.

"Continued fall in oil prices and drop in yield eased liquidity concerns," said Vinod Nair, Head of Research, Geojit Financial Services.

Adding to the upbeat mood, GST collections in October crossed the Rs 1 trillion mark, after a five-month gap, on the back of festive spending and anti-evasion measures, Finance Minister Arun Jaitley tweeted earlier this month.

The Finance Ministry had said 67,45,000 businesses filed Goods and Services Tax (GST) returns in October and deposited Rs 1 trillion as taxes.

However, FPIs have pulled out over Rs 950 bn from the capital markets so far this year. This includes Rs 419 bn from equities and Rs 536 bn from the debt markets.