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FPIs stay bullish on India, pump in $2 bn this month

Market experts credited the huge inflow this month to the rate cut by RBI

Policy Pulse
Publish Date: Apr 24 2016 12:22PM | Updated Date: Apr 24 2016 12:22PM

FPIs stay bullish on India, pump in $2 bn this month

Foreign investors have poured around $2 billion into capital markets so far in April.

 
It comes after a staggering inflow of Rs 19,967 crore in the capital markets — both equities and debt — last month.
 
FPIs turned net buyers of equities in March after pulling out a huge Rs 41,661 crore from the market in the previous four months (November to February).
 
On the whole, till now in 2016, FPIs have invested Rs 11,229 crore in equities while withdrawing Rs 1,121 crore in the debt market, resulting in a net inflow of Rs 10,107 crore.
 
Market experts credited the huge inflow this month to the rate cut by RBI in its first monetary policy meet of 2016-17 on April 5.
 
RBI had reduced the short-term lending rate by 0.25 per cent to an over 5-year low of 6.5 per cent.
 
Apart from this, investor sentiment has improved further following positive macroeconomic data, including a cooling inflation and a forecast of an above-normal monsoon this year, igniting hopes of a higher growth and more policy easing by RBI, experts added.
 
According to data available with depositories, foreign portfolio investors (FPIs) invested Rs 6,734 crore in equities this month till April 22 while it stood at Rs 6,236 crore for the debt market, leading to a total inflow of Rs 12,970 crore (USD 1.95 billion).