New Delhi : Foreign investors have pumped in a staggering over Rs 5,000 crore in the country’s debt markets in last four trading sessions helped by a stable outlook for the rupee.
However, in view of higher stock valuations amid surging markets, foreign portfolio investors (FPIs) pulled out more than Rs 1,500 crore from equities during this period According to latest depository data, FPIs invested a net
sum of Rs 5,181 crore (USD 811 million) in debt markets during August 1-4.This comes following a net inflow of Rs 1.16 lakh crore in last six months from February-July 2017. Prior to that, they withdrew more than Rs 2,300 crore. With the latest inflow, total investment in debt markets has crossed over Rs 1.2 lakh crore (USD 18 billion) this year.
“FPI investments in debt have been robust for the last few months. While the run-up to the monetary policy saw some tepid flows, as investors remained cautious in the event of a no rate cut stance by RBI; FPI flows picked up right after the the 25 bps rate cut on August 2,” Vidya Bala, head of MF research at FundsIndia.com said.
