Foreign Portfolio Investment News
The Foreign Currency Non-Resident Bank (FCNR(B)) deposits rose 9% year-on-year in April 2025, with outstanding balances increasing to $33.08 billion from $30.26 billion in April 2024.
On the last trading session of the previous week, FPIs invested Rs 2,250.20 crore in the Indian markets.
FPIs were big buyers in capital goods, automobiles, financials, telecom and real estate.
The fundamental reason for this sustained FPI flows into debt is the inclusion of Indian bonds in the JP Morgan EM Bond Fund and the Bloomberg Bond Index
FPIs have been sellers in most emerging markets in August mainly due to this double whammy of rising dollar and rising bond yields. Profit booking in financials also contributed to FPI selling, he added.
FPIs remain buyers in financials, capital goods and financials and also in IT selectively.
During the last three months, FPIs have been sustained buyers in the Indian market having invested a cumulative amount of Rs 1,37,603 crore.
FPI inflows had entered the negative zone, as they stood at (-) Rs 1,22,241 crore in 2021-22. However, in 2022-23 the FPI inflows further fell to (-) Rs 40, 936 crore.
Since the ongoing global rally, led by the mother market US, is primarily driven by the US soft landing narrative, this data can provide some support when the market turns weak.
Till July 21, FPIs have invested Rs 43,804 crore in India. This figure includes investment through stock exchanges, primary markets, and bulk deals.
According to data from the depositories, FPIs invested a net sum of Rs 23,152 crore in Indian equities in the first fortnight during May 2-12.
The Ratings agency said that despite the accommodative global monetary policy stance and the central government’s efforts to alleviate uncertainty regarding the higher surcharge headwinds to FPI flows into India will continue.
Overseas investors had put in Rs 55,700 crore in equities in 2016-17 after pulling out over Rs 14,000 crore in the preceding fiscal, according to the data with depositories.
The new norms will facilitate the process of investment and hedging by Foreign Portfolio Investors (FPIs), keeping in view the macro-prudential parameters, said the statement on developmental and regulatory policies by the Reserve Bank of India (RBI).
Mutual fund managers invested a net sum of Rs 11,244 crore in stock markets in April and Rs 9,358 crore in May, taking the total to Rs 20,602 crore, as per data released by the Securities and Exchange Board of India (Sebi).
The Reserve Bank and Sebi are looking into the breach of investment limit by FPIs in HDFC Bank stock and will come out with steps to prevent such violation in the future.
The new framework on foreign portfolio investment limits in government bonds will deepen the market and also reduce 'hot money' outflow concerns in case of resurgence of global volatility, according to a report.
Reserve Bank is in discussions with the Finance Ministry to raise the Foreign Portfolio Investment (FPI) cap in government bonds, Governor Raghuram Rajan said on Tuesday.
Foreign portfolio investment (FPI) inflows into India could trip below USD 15 billion this fiscal amid continued global uncertainty, a Bank of America Merrill Lynch (BofA-ML) report says.
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