FPIs invest over Rs. 6,100cr in Indian equities in March
Foreign Portfolio Investors (FPI) inflows have demonstrated an upward trend in March so far compared to the preceding month. FPIs have poured Rs. 6,139 crore into Indian stocks this month, thanks to robust economic growth, market resilience, and falling US bond yields. This comes after a modest Rs. 1,539 crore investment in February and a massive Rs. 25,743 crore withdrawal in January.
What are the factors attracting FPIs
Manoj Purohit, Partner and leader - FS Tax, Tax and Regulatory Services, BDO India, credits the upswing to India's Q3 GDP growth of 8.4% and the consistent performance of major Indian companies. Regulatory developments, such as removing the UAE from the grey list and SEBI's consultation paper for simplifying disclosure norms for regulated FPIs, have also played a significant role, per Purohit.
FPIs also injected Rs. 1,025 crore into debt market
Besides stocks, FPIs have also invested Rs. 1,025 crore in the debt market during this period. This follows Bloomberg's announcement that India's bonds will be included in its Emerging Market (EM) Local Currency Government Index and related indices starting January 31 next year. FPIs have also been funneling money into debt markets for several months due to the inclusion of Indian government bonds in the JP Morgan Index.
