Rs. 1,445 Crore Invested Into Equities In October by Foreign Investors
Foreign investors have pumped in Rs. 1,445 crore into the stock markets in the first week of this month, continuing their bullish stance of the past few months.
Since March. the equity markets have been witnessing a net inflow by foreign portfolio investors (FPIs) . In January-February, stock markets saw an outflow of Rs. 16,648 crore.
Market experts attributed the inflow to the RBI’s surprise decision to cut policy rate by 0.25 per cent to a six-year low of 6.25 per cent.
Experts said that besides improving sales numbers from automakers, a sign of revival in discretionary spending, the rupee holding higher against the dollar and no further flare-up on the geopolitical front added fuel to the rally.
A rebound globally on easing worries about future of German giant Deutsche Bank and a firming oil price provided a perfect setting, they added.
Vinod Nair, Head of Research at Geojit BNP Paribas Financial Services said,
“We had a surprise cut by RBI… It was a breather post the bounce back after the geo-political issue. Given the neutral commentary from RBI there is limit room for further cut in the near term”.
Net investment by FPIs stood at Rs. 1,445 crore in equities during October 3-7, depositories’ data showed.
However, they pulled out a net sum of Rs. 3,690 crore from the debt markets, taking the total net inflow to Rs. 2,245 crore.
The latest inflow has taken FPI investment tally in equities to Rs. 52,738 crore so far this year, while debt markets have witnessed an outflow of Rs. 1,249 crore – resulting in a net inflow of Rs. 51,489 crore.
Source : http://profit.ndtv.com/news/market/article-foreign-investors-pour-rs-1-445-crore-into-equities-in-october-1472103