Stock exchange data showed net foreign portfolio inflows into India hit a 15-month high of $2.42 billion in February, a big swing from 2018s net outflows of $4.4 billion, the largest since the 2008 global financial crisis.
The inflows can be attributed to the improvement in some of the underlying factors such as weakness in crude oil prices, improvement in rupee against the dollar and better earnings from Indian Inc, said Himanshu Srivastava, Senior Research Analyst at Morningstar.
Nomura Group and Parvest Equity India have exit the Vadodara-based fruit juice maker company.
In addition, such investors put in Rs 530 crore in the debt markets during the period under review.
Overseas investors have pumped in nearly Rs 5,000 crore into the countrys debt markets in the last four trading sessions, primarily due to increase in the limit on foreign ownership of bonds.
A look at the investment data of foreign institutional investors and mutual funds for the last 10 years, reveals that mutual funds have turned net buyers in the last 3 years.
With funds outflow of USD 744 million, listed foreign funds investing in India continued to be sellers in December last year, says a report.
There is no major economic event in global as well as domestic sphere and this in turn, would keep the overall market range-bound. Moreover, the holiday spirit is expected to keep the market muted on account of less volume on the FII counter.
Citi says in the week of 11/23/2016, bond funds continued to see a large outflow of USD 8.6 billion while equity funds had an inflow of USD 5.2 million. India continued to see USD 837 million of FII outflow.
The report by ICICI Securities noted that volatility in foreign portfolio investor (FPI) flows has returned after seven months and could continue in the third quarter.
Since 10 October, FIIs have sold $1 billion in equity and have been sellers on all but two trading sessions over this period. So far this year, FIIs have remained net buyers of Indian equity and have bought $6.76 billion in domestic equity, Mint reported on Wednesday.
Foreign investors dumped shares worth Rs 178 crore in the first two weeks of May as worries over global economy and amended Indo-Mauritius tax treaty hurt the sentiment, reversing the last two months bullish trend.
Foreign investors have pumped in a staggering over Rs 19,000 crore in the Indian capital markets in October so far -- the highest level in six months -- buoyed by RBIs rate cut and positive macro numbers.
Foreign investors poured a mere Rs 547 crore in Indian capital markets during April-June quarter, after pumping in a whooping Rs 79,000 crore in the preceding three months.
Foreign investors have pulled out more than Rs 3,300 crore from Indian stock markets so far this month, mainly on account of better returns from Asian peers, concerns over a slow revival in corporate earnings and continued worries over taxation issues.
The cumulative net investments by foreign investors have now gone past Rs 11 lakh-crore mark, with about Rs 2.74 lakh crore being infused into Indian capital markets by such investors during 2014-15 alone.
The combination of a pick-up in economic and earnings growth as well as a fall in interest rate would help markets to stay strong going forward, believes Adrian Mowat of JPMorgan.
With overseas investors pumping in over USD 3 billion in the Indian capital markets this month, total foreign inflows have touched USD 13 billion since the beginning of the year.
Market analysts attributed the huge inflow to low inflation levels and rate cut by RBI. The central bank on January 14 surprised market participants with a 25 basis point rate cut.
Overseas investors pumped in a little over Rs 2,100 crore in the Indian equity markets in December, making it the lowest investment in 10 months, primarily on account of profit booking.
At the country level for equities, China reported the largest outflows within EM, USD 0.64 billion last week
Overseas investors have pulled out nearly Rs 800 crore from the Indian stock market since the beginning of this month, mainly on account of profit booking.
Foreign investors have poured almost Rs 11,000 crore into the Indian debt market so far this month after being net sellers of bonds in 2013.
Dealers say outstanding positions in index futures have reduced by 24,631 contracts implying foreign investors are seen unwinding some of the long positions in Nifty futures and Bank Nifty futures.
Reflecting robust sentiment on Tata Group companies, foreign investors raised their holding in as many as 13 firms, including biggies like TCS, Tata Motors, Tata Steel and Tata Power in the July-September quarter.
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