RBI may increase FPI in the corporate bond market by around $2 billion
Net outflow by FPIs follows a withdrawal of Rs 12,770 cr from stock market in Aug
They own 27.5% in top 75 listed firms; investments bounce back after falling two straight quarters
After news Sebi curbs, some worry on liquidity getting hit in the short term
FPIs had invested about Rs 7,600 crore in the first half of 2016
However, investments by foreign portfolio investors surged in value terms
Despite the rally in mid-caps for the past three years, overseas investors continue to show their preference for blue chips. In the past five financial years, nearly three out of every four dollars, or about 75 per cent of the money put in by foreign portfolio investors (FPIs), have been invested in the top 10 per cent of the BSE 500 companies with the highest market capitalisation. For instance, the top 50 companies by market capitalisation made up 71 per cent of the total FPI investment in the BSE 500 universe, the shareholding pattern for the quarter ended March 2017 shows. In fact, the top five companies in the index bagged nearly 25 per cent of the investments, hinting at the kind of concentrated portfolio held by the FPIs. In contrast the bottom 50 companies have received less than 1 per cent of the investment from foreign investors for each of the five years. Shareholding data for the quarter ended March 2017 reveals FPI investments in these firms made up a meagre 0.3 per cent .
Foreign Portfolio Investors purchased stocks worth about Rs 56,123 crore in 2016-17
The BJP formed government in four of the five states that went to polls recently
The inflows follow a net investment of Rs 15,862 crore in equity and debt last month
Investors believe govt will continue with its bold reformist policies following a huge win in UP
France, Netherlands and Sweden offer capital gains exemption on sale of equity shares
The net inflow may increase further as two trading sessions are still left in this month
About 2,900 FPIs had received approval from Sebi last financial year
FPI outflow followed withdrawal of close to Rs 77,000 crore on net basis from equity and debts
This year so far, FPIs invested a net sum of Rs 28,742 crore in stocks while they pulled out Rs 24,710 crore from debt market
Domestic cash crunch following demonetisation drive to curb black money sparked intense selling pressure
FPIs invested Rs 37,146 cr in stocks while they pulled out Rs 13,278 cr from debt market, resulting in a combined net inflow of Rs 23,868 cr
Investor sentiment remained downbeat amid some reports projecting a possible win for Donald Trump in the US presidential poll
Most of the funds have been withdrawn from debt markets during the period under review