FPI: FPIs invest over Rs 12,000 crore in first week of November

New Delhi: Overseas investors remained net buyers in the domestic capital markets with an investment of over Rs 12,000 crore in the first week of November as market sentiments improved following economic reforms by the government.

The latest depositories data showed that foreign portfolio investors (FPI) infused a net Rs 6,433.8 crore in equities and Rs 5,673.87 crore in debt segment between November 1-9.

This took the total net investment in the domestic markets (both equity and debt) to Rs 12,107.67 crore.

The latest inflows come after two consecutive months of foreign investments. In October, FPIs invested a net Rs 16,464.6 crore while in September they had put in Rs 6,557.8 crore.

However, Umesh Mehta, head of research at Samco Securities termed the FPI purchases “half-hearted” saying that they invested “an average of Rs 550 crore per day this week which is nothing compared to their aggressive past purchases which tally around Rs 1,500-2,000 crore per day.”

“It seems that FPIs are feeling left out and have joined the herd; clearly visible through their halfhearted purchases in Indian markets. FPIs are currently nibbling a few shares just to maintain their asset allocation weights in the portfolio towards Indian equities,” Mehta said.

Himanshu Srivastava, senior analyst manager research at Morningstar Investment Adviser India said, mainly the domestic factor led to the foreign inflows.

“Measures announced by the government to boost domestic economy and foreign investment like abolishing super-rich surcharge, cutting corporate tax and recapitalisation of banks has started to pay dividends. Besides, stock markets touching new all-time highs and better than expected earnings growth would have also encouraged investors,” he added.