FPI investment limits rise in stocks after govt decision on sectoral caps

The investment legroom for foreign institutional investors (FPIs) has risen in several companies. This is after the government’s decision to treat sectoral limits as FPI investment limit came into effect from April 1. On Friday, depository firms NSDL and CDSL released a list of companies where additional shares are available for FPIs. 

Market players said the higher limits have potential to attract billions in overseas flows but it may not play out immediately. “While the raising of FPI limits for stocks to respective sectoral caps is welcome move, the current FPI sentiment is not very conducive so as to attract flows