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FPIs pour in Rs 8,634 crore in April so far on positive market trends

In March, the overseas investors had pumped in a net Rs 45,981 crore into the capital markets (both equity and debt)

Press Trust of India  |  New Delhi 

FPIs pour in Rs 8,634 cr in April so far
For the 2018-19 financial year, they were net sellers to the tune of Rs 44,500 crore

have pumped in a net sum of Rs 8,634 crore into the Indian capital in the first five trading sessions of April, mainly due to positive

According to analysts, the positive change has been triggered by domestic as well as global factors and the trend is likely to continue for some time.

In March, the had pumped in a net Rs 45,981 crore into the capital (both equity and debt).

For the 2018-19 financial year, they were net sellers to the tune of Rs 44,500 crore.

According to depositories data, foreign portfolio (FPIs) put in a net amount of Rs 8,989.08 crore in equities during April 1-5. However, they pulled out a net Rs 355.27 crore from the debt markets, leading to an overall investment of Rs 8,634 crore in the capital

"Although had some domestic concerns in the form of political uncertainty and increase in cross border tension with Pakistan, alleviation in some of these later improved India's prospects," Morning Star's (Research), said.

Improvement in the country's macro-outlook, as well as expectations of the formation of a stable government at the Centre, brought foreign money back into the Indian markets, he added.

"Consequently, foreign institutional investors (FIIs) turned net buyers in the equity markets to the tune of $7.31 billion cumulatively for February and March," Srivastava said.

Globally, after the January 30 FOMC meet, the declared that the "rate hikes are on hold".

Later, the (ECB) also announced a dovish monetary stance and is continuing with its QE program.

The dovish stance of the three leading central banks of the world along with the monetary stimulus being implemented by the People's Bank of China has unleashed a gush of liquidity through FPI. This liquidity is chasing risky assets like emerging market equity, said V K Vijayakumar, investment strategist at

In the context of the economic slowdown in the developed world and the accommodative stance of the leading central banks, the FPI inflows can be expected to continue going forward, he added.

First Published: Sun, April 07 2019. 13:40 IST
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