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Updated on: Monday, December 23, 2019, 08:10 AM IST

FPIs open floodgates for Indian mart; 2019 inflow crosses Rs 1 trillion

As the year draws to a close, the debt market has seen a net inflow of nearly Rs 27,000 crore by FPIs
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New Delhi: Ignoring negative sentiments around falling GDP growth rate and some policy roadblocks, foreign portfolio investors seem to have flocked to the Indian capital market in a big way in 2019 with a net inflow of over Rs 1.3 lakh crore, including Rs 97,250 crore in equities -- the highest in last six years.

As the year draws to a close, the debt market has seen a net inflow of nearly Rs 27,000 crore by FPIs, while a further amount of Rs 9,000 crore found its way to the hybrid instruments, shows the capital market data compiled by depositories.

Experts believe the positive trend may continue in 2020 as well, but downside risks might arise in form of the US-China trade war and any further deterioration in the domestic credit market conditions.

The potential positives include favourable global interest rates, continuing fund infusion by central banks and an expected revival in domestic corporate earnings, Bajaj Capital Head Research and Advisory Alok Agarwala said.

However, negative developments surrounding the US-China trade war, a sharp rise in crude oil prices and a continuing credit crisis in Indian non-banking finance companies (NBFCs) can spoil the show, he added.

As of now, the foreign portfolio investors (FPIs) have made a net investment of Rs 1.33 lakh crore (nearly USD 19 billion) in the Indian markets so far in 2019, while a few days of trading is yet to take place.

While FPIs have made gross purchases worth over Rs 18 lakh crore so far this year, they have sold securities worth Rs 16.7 lakh crore across equities, debt and hybrid instruments.

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Published on: Monday, December 23, 2019, 08:10 AM IST
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