Investments through participatory notes in domestic capital market rose to Rs 78,110 crore at the end of March, amid positive market sentiments.
Participatory notes (P-notes) are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly after going through a due diligence process.
At the end of February, the same was at Rs 73,428 crore.
"The increase in P-notes investment is in line with the higher net inflows of FPIs in the cash segment, which increased from Rs 13,500 crore in February to Rs 32,000 crore in March," Vinod Nair, head of research at Geojit Financial Services, said.
"An increase in the India equity exposure is motivated by risk-on strategy adopted in emerging markets, as global bond yield reduced and increased liquidity supported by central banks due to slowdown in world economy," Nair said.