Foreign investments hit all-time record in March
In March 2016, they bought shares worth Rs 21,143 crore, their biggest monthly purchase since March 2013.
Mumbai: The investment made by foreign portfolio investors (FPI) in the domestic equity market in March 2016 is their biggest monthly investment in last 34 months. Markets pundits said the attractive valuations commanded by Indian markets after a steep slide in the past few months and improvement in global risk appetite amidst a softening of its stand by the on further interest rate hike US Federal Reserve helped India attract a major chunk of foreign portfolio money.
In March 2016, they bought shares worth Rs 21,143 crore, their biggest monthly purchase since March 2013. Even during May 2014, when the Lok Sabha election result was announced they gave a thumping majority to the BJP, investments made by overseas investors were much lower at Rs 14,006 crore.
“There was a significant outflow of funds during the first two months of this year amidst steep fall in commodity prices and a fear about an interest rate hike by the US Fed. However, in March, there was a general improvement in global risk appetite after US Fed hinted about a gradual and cautious approach with regards to future rate hike moves. Indian equity markets benefited, as valuations were looking quite attractive,” said Sudip Bandyopadhyay, CEO, Destimoney Securities. During January and February 2016, FPIs offloaded shares worth Rs 16,647 crore.