New Delhi : Foreign investors have pumped in nearly $ 2 billion in the country’s capital market in the last seven trading sessions due to finalisation of GST rates for bulk of the items and forecast of a normal monsoon.
Interestingly, most of the funds have been invested in debt markets by foreign portfolio investors (FPIs). “The differential spread between 10-year bond yields in the US and India is still around 4.5-5 per cent. This, coupled with stable outlook for the Indian currency bodes well for FPI flows into debt market,” Sharekhan Head Advisory Hemang Jani said.
According to latest depository data, FPIs have pulled out Rs 289 crore from equities during June 1-9, while they poured in Rs 11,734 crore in debt markets during the period under review, translating into a net inflow of Rs 11,445 crore (USD 1.77 billion), reports PTI.
This comes following a net inflow of more than Rs 1.33 lakh crore in the last four months (February-May) on several factors, including expectations that BJP’s victory in recent Assembly polls will accelerate the pace of reforms.
