FPIs remain bullish on markets, pour in Rs 9,500-cr in September
Foreign investors have pumped Rs 9,500 crore ($1.4 billion) into the country’s capital markets so far this month, driven by sound progress on rollout of GST and contraction in current account deficit (CAD). The trend is likely to continue in the coming weeks as markets regulator Sebi has decided to offer direct entry to well-regulated foreign investors for investing in corporate bonds, experts believe.
The latest infusion comes on top of a whopping inflow of Rs 25,904 in the preceding two months (July-August). Prior to that, foreign portfolio investors (FPIs) had pulled out a total of Rs 4,373 crore from the capital markets (equity and debt) in June and July. Experts attributed the latest flurry in inflow to factors including sound progress on rollout of the Goods and Services Tax (GST), better corporate earnings and the US Federal Reserve’s decision not to lift interest rates.