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Spurred on by smooth GST roll-out, FPIs pump in Rs 11,000 cr in July so far

The latest inflow comes following a net infusion of over Rs 1.62 lakh cr in the previous 5 months

Press Trust of India  |  New Delhi 

Despite mid-cap rally, FPIs bond with blue chips

Foreign investors have pumped in nearly Rs 11,000 crore in the capital in the first two weeks of this month, enthused by the trouble-free rollout of GST and stimulating Indian economy.

The latest inflow comes following a net infusion of over Rs 1.62 lakh crore in the previous five months (February-June) on several factors.

Prior to that, such investors had pulled out over Rs 3,496 crore from debt in January.

Dinesh Rohira, Founder and CEO, 5nance.Com has attributed the latest inflow to stimulating Indian economy.

Besides, he said, investor sentiments remained due to the trouble-free rollout of the Goods and Services Tax on July 1.

He said however that the recent development on incoming global macro data indicates a sign of revival in some developed countries which is expected to poise hurdle for Indian market as FPI may shift their investment avenue.

Further, the inflow from FPI is expected to remain subdued with depreciating US currency against the Indian rupee, Rohira said.

"There is a growing concern among foreign investors that an economic recovery in the USA and other major economies could necessitate central bankers to unwind the highly accommodative monetary policy," Sharekhan Head of Research Gaurav Dua said.

According to latest depository data, FPIs invested a net Rs 498 crore in equities during July 3-14, while they poured Rs 10,405 crore in the debt during the period under review, translating into a net inflow of Rs 10,903 crore (USD 1.7 billion).

With the latest inflow, total investment in capital markets (equity and debt) has reached Rs 1.6 lakh crore (over USD 24 billion) this year.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sun, July 16 2017. 15:49 IST