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
Apart from the bond yields and geopolitical crisis, another trigger for FPI selling was the tweak in India's tax treaty with Mauritius, which would now impose higher scrutiny on investments
FPIs have turned cautious as they pulled out Rs 325 crore from Indian equities in the first week of this month owing to relatively high valuations and the upcoming general elections. The net outflow came after a staggering investment of Rs 35,000 crore in March and Rs 1,539 crore in February, data with the depositories showed. Going ahead, Geojit Financial Services Chief Investment Strategist VK Vijayakumar said the US 10-year yield has spiked to 4.4 per cent, which will impact FPI (foreign portfolio investor) investment flows into India in the near term. However, FPI selling will be limited despite the high US bond yields since the Indian stock market is bullish and has been setting new records consistently, he added. smallcase Manager and Senior Research Analyst at Capitalmind Krishna Appala believes that FPIs might return post-elections or upon early signs of a US Fed rate reduction. According to the data with the depositories, FPIs withdrew Rs 325 crore from Indian equities th
Six companies have already completed their fundraising process; two were listed on Wednesday.
Aggregate holdings of FPIs stand at Rs 54.5 trillion, implying 16.6% holdings of overall Indian equities as of Nov'23 which is the lowest since 2012.
While the SOP offers clarity on exemptions and formats for granular details, industry players report that FPI custodians are worried about certain implementation challenges
During the first fortnight of October, foreign portfolio investors (FPIs) withdrew Rs 2,069 crore from the power sector and around Rs 1,500 crore each from infrastructure and IT
Equity mutual funds have seen inflows from domestic investors for 31 consecutive months, according to official data
The US economy, on the other hand, has remained resilient amid strong consumer spending and a resilient labour market
Global investors bought $17.2 billion worth of shares on a net basis this year through September 1, which more than made up for their retreat in 2022
Domestic brokerage says US yields, nearing a 16-year high, are at the upper range, as inflation is moderating
he most recent surge in US yields from 3.75% to 4.3% was triggered by the rating downgrade by Fitch and is putting pressure on FPI flows towards India
The average stock price gain for these companies was nearly 30 per cent during the quarter, compared to a 13 per cent gain in the Nifty 500
Flows go into reverse gear on rising US bond yields
A trend reversal may happen if FPI flows turn negative; Nifty will need to fall below Mt 18,000 to go into serious downtrend
A turnaround in foreign flows has helped domestic markets exceed the all-time highs chalked up in December 2022 and rebound more than 10 per cent from this year's lows
Strong inflows from foreign portfolio investors (FPIs) and encouraging valuations are underpinning the deal momentum
Foreign Portfolio Investors (FPIs) continued their buying stance and pumped in close to Rs 9,800 crore in Indian equities this month so far, on strong economic growth and attractive valuations of stocks. This came following a nine-month high investment of Rs 43,838 crore in equities in May, Rs 11,631 crore in April, and Rs 7,936 crore in March, data with the depositories showed. Before that, FPIs had pulled out over Rs 34,000 crore during the January-February period. Further, the outlook for FPI flows in the rest of June is positive as the Reserve Bank of India (RBI) has signaled that it will not be raising interest rates shortly, which is a positive sign for equity markets, Mayank Mehraa, Smallcase manager and principal partner at financial consultancy Craving Alpha, said. However, valuation could become a concern as Indian markets continue to surge and stricter regulatory norms could also check foreign money flowing into India to some extent, Himanshu Srivastava, Associate Direct
Strong flows into domestic banks even as their developed world counterparts reeled under pressure was underpinned by improved outlook
The selling dragged the BSE Financial Services index by 4.7 per cent in the last two weeks of September.