Millennium Post

Foreign portfolio investment hits Rs 20,000 crore in November so far

Overseas investors have pumped in close to Rs 20,000 crore in the capital markets since the beginning of this month on positive global cues coupled with hopes from the government's reforms agenda. The net investment by foreign investors in the equity market was Rs 10,778 crore ($1.75 billion) from 3-21 November, while they infused a net amount of Rs 8,870 crore ($1.44 billion) in the debt market, taking the total to Rs 19,648 crore ($3.2 billion), as per the latest data.

Market analysts said that overseas investors under the new category FPI (comprising Foreign Institutional Investors, sub-accounts or foreign portfolio investors) are betting on hopes that European Central Bank (ECB) may announce stimulus measures to revive growth in the Eurozone economies. Besides, Japan has already announced plans to expand its additional stimulus package.

Analysts believe that this excess liquidity will come more into India compared to other emerging market countries. Moreover, they said, foreign investors are betting on India on account of the reforms agenda of the Central government.

Since the beginning of the year, foreign investors have made a net investment of Rs 2.4 lakh crore ($39.4 billion) into the country's securities market. This includes a net investment of a little over Rs 93,000 crore in equities and Rs 1.45 lakh crore into debt market. From the beginning of June, FIIs along with sub-accounts and qualified foreign investors, have been clubbed together by market regulator Sebi to create a new investor category called Foreign Portfolio Investors.
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