Investment via participatory notes declines to Rs 86,706 crore in May

FPIs will reverse selling stance in one/two quarters, return to India's equities: Experts

Investment in the Indian capital markets through participatory notes (P-notes) dropped to Rs 86,706 crore until end-May from the preceding month, while experts say foreign investors will reverse their selling stance and return to the country’s equities in the next one/two quarters.

P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly.

They, however, need to go through a due diligence process.

According to the Securities and Exchange Board of India data, the value of P-note investments in Indian markets - equity, debt,