Foreign portfolio investors (FPIs) have injected close to Rs 17,220 crores in February 2019 on a net basis into Indian equities, setting up a 15 month high. The foreign investment inflow has reached its peak due to the clarity on the government’s spending plans and positive sentiments.
According to the latest data from the depositories, FPI net inflow into equities in February 2019 stood at Rs 1,17,899.79 crores whereas the net outflow in equities during the same period stood at Rs 1,00,680.17 crores, setting the net investment of Rs 17,219.6 crores into the stock market.
The foreign portfolio investors, in November 2017, had infused in a net amount of around Rs 19,728 crore into Indian stocks. However, as per the data from the depositories available, FPIs in the previous month of January 2019 were net sellers as they pulled out investment worth Rs 5,263.85 crores from the equities.
A number of factors can be attributed to the surge in the FPI inflow ranging from well-established government expenditure plans to RBI’s change in stance from calibrated tightening to neutral along with RBI’s decision to remove the limit on investments by foreign portfolio investors in corporate bonds.
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