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
The value of holdings of FPIs and MFs dropped 9.4% and 8.3%, respectively, during the September quarter
FPI, according to analysts, have been more nervous as regards the debt market given the sliding rupee, fiscal and current account deficits.
Several global funds oppose restrictions on NRIs, PIOs
Currently, FPIs are subject to a KYC review as and when there is any change in material information or disclosure
The number of FPIs with the markets regulator climbed to 9,136 at the end of March this year from 7,807 a year ago, resulting in an addition of 1,329 according to Sebi data
Shares worth Rs 92 bn available from today for global funds