Overseas investors have pumped in over Rs 2,500 crore in the Indian capital markets
in the first week of the month after pulling out hefty funds in the preceding month.
Most of the inflows have been witnessed in the debt markets
during the period under review.
According to data available with depositories, Foreign Portfolio Investors (FPIs) infused a net amount of Rs 604 crore into equities during February 1 to 5, while they poured in a net sum of Rs 1,965 crore in the debt market during the same period, resulting in a net inflow of Rs 2,568 crore ($380 million).
Prior to that, FPIs had pulled out net Rs 6,245 crore from the capital markets
Capital poured in by FPIs is often referred to as 'hot money' because of its unpredictability, although they continue to remain among the most important drivers of Indian stock markets.
According to market experts, statement by Union Minister Venkaiah Naidu expressing hope that key reform bills including GST and Bankruptcy, will get passed in the Budget Session beginning February 23, perked up the investor mood.
In 2015, FPIs had infused a net amount of Rs 17,806 crore in equities and Rs 45,856 crore in bond markets.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.