Foreign portfolio investors' inflows set for highest level since March 2017

Over $3 billion already invested in domestic equities in March; Fed pause, hopes of political continuity key drivers

Overseas investors have poured $3.2 billion (Rs 22,340 crore) into domestic equities this month. If the rest of the month sees no outflows, this will be the highest inflow tally in a calendar month since March 2017, when foreign portfolio investors (FPIs) had pumped in $5.1 billion.

Experts say foreign investor sentiment was bolstered by the US Federal Reserve’s decision to go slow with interest rate hikes and hopes of political stability. Most opinion polls have suggested the ruling National Democratic Alliance (NDA) will come back to power in the upcoming general elections, which begins next month.

Fed’s dovish stance