Annual FPI inflows for India near $20bn mark this year – Times of India

Posted: December 29, 2019 at 12:42 am

MUMBAI : Inflows from foreign portfolio investors (FPIs) into India is nearing the $20-billion mark in 2019, with a majority of the funds $14.2 billion expected through the equity route. The debt segment may contribute around $3.5 billion. The total flows, however, still remain less than half of the all-time high annual inflow figure of $42.4 billion recorded in 2014.During 2019, the biggest net inflows were seen in March and November, while August and January witnessed net outflows, official data showed. Also, the net equity inflow during the year crossed the Rs 1-lakh-crore mark.'; var randomNumber = Math.random(); var isIndia = (window.geoinfo && window.geoinfo.CountryCode === 'IN') && (window.location.href.indexOf('outsideindia') === -1 ); console.log(isIndia && randomNumber

The data further showed that FPIs were big sellers in the stock market in July and August, while they turned in large net buying figures in March, November and April. In the debt segment, FPIs net bought substantial amounts in March and August, while they were big sellers during April, December and November.

FPI flows in 2020 are expected to see a boost from the recent government directive under which the statutory foreign holding limit in a company was changed from 24% to the sectoral foreign investment limit effective April 1, 2020. This implementation will lead to MSCI Indias weight in the MSCI EM (Emerging Market) to rise. Using the current list of constituents, we expect MSCI Indias weight to rise by about 70 basis points (100bps = 1 percentage point) in the semi-annual index review of May 2020, implying passive inflows of $2.5 billion, a report by foreign broking major Morgan Stanley noted.

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Annual FPI inflows for India near $20bn mark this year - Times of India

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