Investors have adopted a strategy of 'wait and watch' as the Lok Sabha Elections are underway
The time frame for investment may have dissuaded funds wanting to invest, say experts
Foreign portfolio investors were net buyers for the previous two months as well, infusing a net sum of Rs 11,182 crore in February and Rs 45,981 crore in March
In March, the overseas investors had pumped in a net Rs 45,981 crore into the capital markets (both equity and debt)
Barring these FPIs from fresh purchases would not have any major impact on investments, say experts
In February as well, foreign portfolio investors were net buyers as they had invested a net amount of Rs 11,182 crore in the capital markets both in equity as well as debt segment
In February, foreign portfolio investors had invested a net amount of Rs 11,182 crore in the capital markets (both equity and debt)
As per the latest data from depositories, foreign investors pumped in Rs 1,17,899.79 cr into equities and pulled out Rs 1,00,680.17 cr in Feb, a net investment of Rs 11,183 cr into the stock market
The market has seen single-day FPI investment of $1.7 billion, the highest in 4 years
Besides cross-border tensions, another major focus area for the FPIs would be the outcome of the general elections
The inflow into the equity market can be a result of the positive view on the Budget
This comes following a pullout of Rs 5,264 cr by foreign portfolio investors (FPIs) in January. Prior to that, they had put in Rs 5,884 cr in the stock markets during Nov-Dec 2018
Other factors such as movement in crude prices and currency and worries over global trade war will continue to guide the direction of FPI flows
It will enable them to become prominent investors in govt securities and corporate bonds
This comes following a net inflow of over Rs 69 billion in the equity market by Foreign Portfolio Investors on easing crude oil prices and a strengthening rupee
FPIs adopted a cautious stance towards India and other emerging markets from the start of the quarter
FPIs infused Rs 38.62 billion in the equity markets during November 1-16, and Rs 44.23 billion in the debt market, taking the total to Rs 82.85 billion ($1.14 billion)
FPIs had pulled out over Rs 210 bn from the capital markets (both equity and debt) in September. Before that, foreign investors had put in Rs 75 bn in July and August
Further, upcoming elections in India and escalating trade war tensions between the US and China too blemished the outlook of equities in emerging markets like India
Among IT stocks, Zensar Technologies (9.7 percentage points), HCL Technologies (1.8 percentage points) and L&T Infotech (1.6 percentage points) saw their holding rise the most in percentage terms