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FPIs turn net buyers in Feb; infuse Rs 5,300 cr in last 6 trading sessions

This comes following a pullout of Rs 5,264 cr by foreign portfolio investors (FPIs) in January. Prior to that, they had put in Rs 5,884 cr in the stock markets during Nov-Dec 2018

Press Trust of India  |  New Delhi 

FPIs turn net buyers in Feb; invest Rs 5,300 cr in just 6 trading sessions

Foreign investors have infused close to Rs 5,300 crore in the Indian equity in the last six trading sessions, mainly on expectations of higher

This comes following a pullout of Rs 5,264 crore by (FPIs) in January. Prior to that, they had put in Rs 5,884 crore in the stock during November-December 2018.

According to data available with depositories, put in a net amount of Rs 5,273 crore in equities during February 1-8. However, they pulled out a net sum of Rs 2,795 crore from the debt market during the period under review.

After turning net sellers in January, have turned net buyers in February so far. Though it is a welcome change, it is too early in the month to conclude as to where the flows are headed, analysts said.

However, the recent net inflows could be somewhat attributed to the positive view on the Budget and government resolve in working towards bringing economic growth, said Himanshu Srivastava, Senior Analyst Manager Research, India.

"Despite the recent net inflows, I believe the broader approach would continue to be cautious and would continue to adopt a wait and watch approach. The focus would continue to be on the country's progress on the front as well as the general elections," he added.

Other factors such as movement in crude prices and currency, which would have a bearing on the country's macro-environment, and worries over global trade war will continue to guide the direction of FPI flows, he added.

The stance of towards interest rates will also play a significant role in foreign fund flows.

First Published: Sun, February 10 2019. 10:35 IST