FPIs stay bullish on India, pump in $2 billion in May

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Overseas investors have pumped in more than USD 2 billion so far in the country’s capital market this month, helped by stable outlook for the rupee.

Interestingly, most of the funds have been invested in the debt markets.

As per most recent safe information, Foreign Portfolio Investors (FPIs) put a net Rs 4,157 crore in values amid May 2-19, while they poured Rs 12,941 crore in the obligation markets amid the period under survey, converting into a net inflow of Rs 17,099 crore (USD 2.66 billion).

This comes taking after a net inflow of near Rs 94,900 crore over the most recent three months (February-April) on a few variables, including desires that BJP’s triumph in as of late held get together surveys will quicken the pace of changes.

Preceding that, such financial specialists had hauled out over Rs 3,496 crore from obligation showcases in January.

“FPI streams into Indian values are quieted as the market has keep running up in the previous four months and valuations are no longer shabby. Having said this, we are seeing a few streams returning to value showcase for recent days,” Sharekhan Head Advisory Hemang Jani said.

“The differential spread between 10-year security yields in the US and India is still around 4.5-5 percent, this, combined with stable standpoint for the Indian cash looks good for FPI streams into obligation showcase,” Jani included.

With the latest inflow, total investment in capital markets (equity and debt) has crossed over Rs 1 lakh crore this year.

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