Page 4 - Foreign Portfolio Investor

FPI limit in G-sec unchanged at 6% of outstanding stocks of securities: RBI

The Reserve Bank on Friday said the limits for FPI investment in government securities, state development loans and corporate bonds will remain unchanged at 6 per cent, 2 per cent and 15 per cent, respectively, of outstanding stocks of securities for the current fiscal. As of now, all investments by eligible investors in the 'specified securities' will be reckoned under the fully accessible route (FAR), the RBI said in a notification. "The limits for FPI investment in government securities (g-secs), state government securities (SGSs) and corporate bonds shall remain unchanged at 6 per cent, 2 per cent and 15 per cent, respectively, of the outstanding stocks of securities for 2024-25," it said. The allocation of incremental changes in the g-sec limit (in absolute terms) over the two sub-categories 'General' and 'Long-term' will be retained at 50:50 for 2024-25, it added. The entire increase in limits for SDLs (in absolute terms) has been added to the general sub-category of state

Vodafone Idea's FPO booked 6.4 times as foreign investors bet big

VIL has already allotted 4.9 billion shares to anchor investors, which includes GQG Partners Fidelity, Stichting, Redwheel, Motilal Oswal Mutual Fund and Troo Capital

FPIs infuse Rs 13,300 cr in April so far amidst bullish economic outlook

Foreign investors have infused over Rs 13,300 crore in Indian equities in the first two weeks of the month owing to a resilient domestic economy with promising growth prospects. Going ahead, concerns over changes in India-Mauritius tax treaty will weigh on Foreign Portfolio Investor (FPI) inflows in the near-term till clarity emerges on details of the new treaty, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. Another major concern is the surcharged geopolitical situation in the Middle East with heightened tensions between Iran and Israel. These will keep the markets on tenterhooks in the near-term, he added. Since domestic institutional investors (DIIs) are sitting on huge liquidity and the retail and HNIs in India are highly optimistic about the Indian market, FPI selling will be largely absorbed by domestic money. According to the data with the depositories, FPIs made a net investment of Rs 13,347 crore in Indian equities this month (till April ...

FPIs make remarkable comeback; infuse Rs 2 trillion in equities in FY24

Foreign investors made a strong return by injecting more than Rs 2 lakh crore into Indian equities in 2023-24, driven by optimism surrounding the country's robust economic fundamentals amidst a challenging global environment. Looking forward to 2025, Bharat Dhawan, Managing Partner at Mazars in India, said that the outlook is cautiously optimistic and anticipates sustained FPI inflows supported by progressive policy reforms, economic stability, and attractive investment avenues. "However, we remain mindful of global geopolitical influences that may introduce intermittent volatility, emphasising the importance of strategic planning and agility in navigating market fluctuations," he added. The outlook for FY25 from an FPI perspective, continues to remain strong, Naveen KR, smallcase Manager and Senior Director at Windmill Capital, said. In the current fiscal 2023-34, Foreign Portfolio Investors (FPIs) have made a net investment of around Rs 2.08 lakh crore in the Indian equity marke

FPIs invest over Rs 38K cr in equities in Mar so far amid positive outlook

FPIs have shown a significant resurgence in their investment activity within the Indian equity markets this month, injecting over Rs 38,000 crore, mainly driven by favourable shifts in the global economic scenario and strong domestic macroeconomic outlook. The investment came following a modest investment of Rs 1,539 crore in February and a massive outflow of Rs 25,743 crore in January, data with the depositories snowed. With this, foreign portfolio investors' (FPIs) investment has turned positive to the tune of Rs 13,893 crore in equities so far in 2024 and Rs 55,480 crore in the debt market. Himanshu Srivastava, Associate Director at Manager Research at Morningstar Investment Research India, highlighted that FPIs have become significant buyers in March. The improved global economic conditions and positive Indian macroeconomic scenario have driven FPIs to invest in high growth-oriented markets like India. Additionally, the recent market correction has provided a buying ...

Mauritius is ensuring transparency, there are no shell companies: Minister

Mauritius is ensuring transparency in the financial services sector and there are no shell companies there, Mauritian minister Soomilduth Bholah has said as he pitched the island nation as the platform for Indian companies to tap the African market. In an exclusive interview to PTI in the national capital, Bholah said that Mauritius is looking for investments from India, which he described as an economic powerhouse. Mauritius always promotes good governance and focused on transparency. The country would love to learn from India in each and every sector, the Mauritius Financial Services and Good Governance Minister said. The island nation, which has a long standing strong bilateral ties with India, is mainly looking for collaborative opportunities in the fintech space. "It is a pleasure to be in India. I would say that while India is important for Mauritius, Mauritius is also important for India, especially in the financial services sector," he said. In response to a query on ...

FPIs inject over Rs 6,100 cr in equities in March on strong economic growth

Foreign Portfolio Investors (FPIs) are turning steady buyers as they bought Indian equities worth Rs 6,139 crore so far this month driven by strong economic growth, market resilience and decline in US bond yields. This came following a modest investment of Rs 1,539 crore in February and massive outflow of Rs 25,743 crore in January, data with the depositories snowed. "FPI inflows have shown a positive trend as compared to the previous month. Thanks to the recent announcement of Q3 GDP numbers at 8.4 per cent, persistence performance of large Indian corporates being major factors for turning the tide green for the Indian equity market," Manoj Purohit, Partner and leader - FS Tax, Tax and Regulatory Services, BDO India, said. On the regulatory front, announcements such as removal of UAE from the grey list, Sebi's consultation paper for easing disclosures norms for regulated FPIs have been the major catalysts to put India on the forefront for potential long term investments for the ...

FPI count at GIFT City doubles in last four months, shows NSDL data

Many fund managers are increasingly looking to redomicile their base to India's maiden International Financial Services Centre (IFSC), say legal experts

Rupee, govt bonds gain post lower-than-expected December CPI data

The fall in US Treasury yields and foreign portfolio investor (FPI) inflows further aided rupee and bonds

A fourth of FPI inflows in 2023 went into primary markets, shows data

Data provided by depository NSDL revealed that Rs 44,950 crore of the total FPI flows last year went into primary issuances

FPIs inject Rs 1.7 trn into Indian equities in 2023, uptick in flows in Dec

In a remarkable comeback, foreign portfolio investors (FPIs) have pumped Rs 1.7 lakh crore into the Indian equity markets in 2023, propelled by confidence in the country's robust economic fundamentals amid a challenging global landscape. The year 2023 has witnessed massive investment by FPIs, thanks to the sharp uptick in inflows of Rs 66,134 crore in December. Going forward, FPI flows are expected to be robust. However, their allocation is likely to be selective, said Kislay Upadhyay - smallcase Manager and founder of Fidel Folio. Anticipating a continued decrease in the US interest rates throughout 2024, it is likely that FPIs are likely to increase their purchases, especially in the early months of the New Year in the run-up to the general elections, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. In 2023, FPIs made a net investment of Rs 1.71 lakh crore in equities and Rs 68,663 crore in the debt markets. Together, they infused Rs 2.4 lakh crore

FPIs flood Indian equity markets, infuse Rs 1.5 trn despite uncertainty

In a dazzling resurgence, foreign investors have graced the Indian equity markets with an influx of nearly Rs 1.5 lakh crore in 2023, fuelled by optimism over the country's resilient economic fundamentals amid shadows of a gloomy global scenario. Experts believe that the positive trend may continue in 2024. This follows Indian equities witnessing the worst-ever net outflow of Rs 1.21 lakh crore by FPIs in 2022 on aggressive rate hikes by the central banks globally after net inflows for three consecutive years. Going forward, as the general elections approach next year, political stability and economic growth will become focal points for foreign investors. Besides, global cues on the inflation and interest rate scenario would dictate the flow of foreign money into Indian equities, said Himanshu Srivastava, Associate Director Manager Research at Morningstar Investment Research India. India, with its promising position for economic growth, is expected to continue attracting foreign ..

FPIs infuse Rs 9,000 crore in equities in Nov, inflow in debt at 6-yr high

After turning net sellers in the past two months, FPIs again made a comeback in the Indian stock markets in November and pumped in Rs 9,000 crore amid fall in US treasury bond yields and the resilience of the domestic market. Additionally, Foreign Portfolio Investors (FPIs) made a net investment of Rs 14,860 crore in the debt market last month, making it the highest level in six years, data with the depositories showed. Going forward, FPI response will be crucially determined by the market trend, which, in turn, will be influenced by the state election results, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. If the state election results turn out to be favorable for the ruling dispensation, the market will stage a rally, and overseas investors are unlikely to miss that rally by big selling, he added. According to the data, FPIs made a net investment of Rs 9,000 crore in Indian equities in November. This came after FPIs dumped Indian equities worth R

FPIs reverse selling trend ; invest Rs 378 crore in equities in Nov

Foreign Portfolio Investors (FPIs) have pared their bearish stance on Indian equities during November as they made a net investment of Rs 378 crore on the sharp decline in US treasury bond yields. This came after FPIs dumped Indian equities worth Rs 24,548 crore in October and Rs 14,767 crore in September, data with the depositories showed. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs 1.74 lakh crore during the period. Overall, the cumulative trend for 2023 remains healthy, with FPIs pouring in Rs 96,340 crore so far this calendar year. "On the way ahead, we think that improving risk appetite in the EM (emerging markets) and falling risk-free yields in the US will draw FPI flows towards India," Hitesh Jain, Strategist, Institutional Equities Research at YES Securities India, said. According to the data, FPIs made a net investment of Rs 378.2 crore in Indian equities this month (till November ...

FPIs turn buyers; invest Rs 1,433 cr in equities in November so far

After sustained selling in the last two and a half months, FPIs bought Indian equities worth Rs 1,433 crore thus far in November, mainly due to the decline in US treasury bond yields and crude oil prices. Foreign Portfolios Investors (FPIs) were net sellers till November 15. However, they reversed the selling trend by infusing money during November 16-17, data with the depositories showed. "The ongoing festive season in India has been seen as a contributing factor to the renewed interest of FPIs in the Indian market. Alongside this, a decrease in US Treasury bond yields and a decline in crude oil prices alleviated some of the pressures that prompted the sell-off earlier," Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment Adviser India, said. Some intermittent corrections in the markets could have also provided buying opportunities in a few pockets, Srivastava added. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the .

FPIs selling spree continues; pull out Rs 5,800 cr from equities in Nov

Foreign Portfolio Investors (FPIs) selling spree continued as they dumped Indian equity worth over Rs 5,800 crore this month so far on rising interest rates and geopolitical tensions in the Middle East. This came after such investors withdrew Rs 24,548 crore in October and Rs 14,767 crore in September, data with the depositories showed. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs 1.74 lakh crore during the period. Going forward, this selling trend is unlikely to continue as the US Federal Reserve signalled a dovish stance in its meeting last week, experts said. According to the data with the depositories, FPIs sold shares to the tune of Rs 5,805 crore during November 1-10. The FPI selling trend which started in September continued in October and is showing no signs of reversing in November even though the intensity of selling has come down this month. This could be largely attributed to the growing

DII-FPI shareholding gap narrows to all-time low in September quarter

At 13.11 percentage points versus peak of nearly 50% in 2015

FPI sell-off continues; Rs 3,400 cr pulled out in just 3 sessions in Nov

Foreign Portfolio Investors' (FPIs) selling spree continues as they pulled out over Rs 3,400 crore from the Indian equity markets in the first three trading sessions of November on rising interest rates and geopolitical tensions in the Middle East. This came after such investors withdrew Rs 24,548 crore in October and Rs 14,767 crore in September, data with the depositories showed. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs 1.74 lakh crore during the period. Going forward, this selling trend is unlikely to continue since the main trigger for FPI selling, the rising bond yields, has reversed on the US Federal Reserve signalling a dovish stance in its November meeting. "The main trigger for this reversal in bond yields is the subtle dovish commentary from Fed chief Jerome Powell that 'despite elevated inflation, inflationary expectations remain well anchored'. The market has interpreted this statement

FPIs pull Rs 20,300 cr from equities in Oct; invests Rs 6,080 cr in debt

Foreign Portfolio Investors (FPIs) have pulled out over Rs 20,300 crore from Indian equities this month so far, primarily due to a sharp surge in the US treasury yield, and the uncertain environment resulting from the Israel-Hamas conflict. However, the story takes an intriguing turn on observing FPI activity in Indian debt as they have infused Rs 6,080 crore into the debt market during the period under review, data with the depositories showed. Going ahead, the future of FPI flows hinges on several factors, including the US Federal Reserve's November 2 meeting and global economic developments, Mayank Mehraa, smallcase manager and principal partner at Craving Alpha, said. In the short term, FPIs are expected to remain cautious amid global uncertainty and increasing US interest rates. Nonetheless, India's strong economic growth prospects should maintain its appeal for foreign investors in both equities and debt, he added. According to the data with the depositories, Foreign Portfoli

Foreign portfolio investors fret as tighter disclosure kick in next month

While the SOP offers clarity on exemptions and formats for granular details, industry players report that FPI custodians are worried about certain implementation challenges