FPIs inject over Rs 5,700 crore in capital markets in Sep

19/09/2016 12:54

Overseas investors pumped in a massive Rs 5,790 crore into capital markets of Asia’s third biggest economy in the month of September 2016 thus far, as improved macro-economic outlook amid hopes of an RBI interest rate cut bolstered risk taking appetite.

Foreign Portfolio Investors (FPIs) made a net investment of Rs 2,122 crore in Indian equities in the period September 1-16, while in debt markets; they net invested Rs 3,668 crore, resulting in a total inflow of Rs 5,790 crore, latest data from the depositories show.

FPIs had made a net investment of Rs 25,904 crore in two months of July and August.

The total investment made by overseas investors in equities this year thus far stands at Rs 42,972 crore, while they withdrew Rs 3,680 crore from the debt market, resulting in a net flow of Rs 39,292 crore.

A better monsoon has bolstered hopes of a pickup in domestic consumption while the nod to the much anticipated Goods and Services Tax (GST) bill and higher domestic passenger vehicle sales also buoyed sentiment.

Meanwhile, a retreat in consumer inflation, the RBI’s benchmark price gauge, to the lowest level in five months at 5.05 per cent in August has also raised hopes of a near-term cut in interest rates.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s