Foreign investors infused over Rs 7,900 crore in Indian equities in the first week of the month amid a healthy economic and earnings growth momentum. With this, total FPI investment in equities reached Rs 1.16 lakh crore so far this year, data with the depositories showed. Going forward, the Union Budget and Q1 FY25 earnings could determine the sustainability of FPI flows, experts said. According to the data, foreign portfolio investors (FPIs) have made a net inflow of Rs 7,962 crore in equities so far this month (till July 5). This came following an inflow of Rs 26,565 crore in equities in June, driven by political stability and a sharp rebound in markets. Before that, FPIs withdrew Rs 25,586 crore in May on poll jitters and over Rs 8,700 crore in April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Some funds were probably waiting on the sidelines for the election event to be over, Milind Muchhala, Executive Director, Juliu
f an FPI delays informing a custodian (called a Designated Depository Participant or DDP) about a change, the DDP is required to report the delay to Sebi within two working days.
Foreign investors have pulled out a massive Rs 28,200 crore from Indian equities so far this month, owing to uncertainties about the outcome of the general elections and attractive valuations of Chinese markets. The withdrawal was way higher than a net pullout of over Rs 8,700 crore in April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Going forward, there is likely to be a dramatic change in foreign portfolio investors' (FPIs) equity flows in response to election results. Political stability will attract huge inflows in the Indian market, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. Following the Lok Sabha elections, FPI inflows into India could strengthen due to three key factors -- potential easing of interest rates by the US Federal Reserve, positive resolutions in global geopolitical tensi
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