GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

FPIs Stay Bullish on Debt, Pump in Rs 10,000 Crore in August

FPIs invested a net sum of Rs 10,419 crore (USD 1.6 billion) in the debt markets during August 1-12.

PTI

Updated:August 13, 2017, 11:09 AM IST
facebookTwittergoogleskypewhatsapp
FPIs Stay Bullish on Debt, Pump in Rs 10,000 Crore in August
Image for representation only (Photo: Reuters)
New Delhi: Foreign investors have pumped in over Rs 10,000 crore in the Indian debt markets this month so far, following the RBI's decision to cut key interest rates.

However, in view of higher stock valuations, foreign portfolio investors (FPIs) pulled out more than Rs 2,000 crore from equities during this period.

According to the latest depository data, FPIs invested a net sum of Rs 10,419 crore (USD 1.6 billion) in the debt markets during August 1-12.

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 reached over Rs 1.24 lakh crore (USD 19 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.

Markets regulator Sebi, in early July, increased the FPI limit in central government securities, which provided a longer rope for them to pump in money.

"With the spread between US 10-year bond and 10-year India gilts at a good 4.2 percentage points even now, FPIs continue to seek opportunities in the Indian debt market with the rupee-dollar equation stable," she added.

Echoing similar views, Alok Agarwala, senior vice- president and head investment analytics at Bajaj Capital said: "Indian real policy rates as well as real treasury yields remain the highest among major economies except probably Brazil and Russia. Besides, a stable currency gives an added incentive to foreign investors".

The RBI in its latest monetary policy statement, accepted downside risks to growth and inflation hinting that their next action will be data dependent.

Agarwala said data is unlikely to improve in the very short term as the temporary adverse impact of GST implementation on growth is visible in the contraction in manufacturing and service sectors for July.

"In this scenario, Indian treasuries seem an attractive choice for FPIs. The Indian G-Sec yield curve is pretty steep (and hence attractive for term spread plays) barring the benchmark 10-year bond," he added.
Read full article
Next Story
facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Reliance 919.75 -1.75 -0.19
Kotak Mahindra 1,030.10 +5.45 +0.53
Vedanta 298.00 +13.45 +4.73
ICICI Bank 303.15 -1.20 -0.39
Yes Bank 315.90 +12.00 +3.95
Company Price Change %Gain
Kotak Mahindra 1,029.00 +4.00 +0.39
ICICI Bank 303.45 -1.10 -0.36
Bharti Airtel 519.00 -2.00 -0.38
Bombay Dyeing 266.70 +38.35 +16.79
Greenply Ind 335.50 +2.75 +0.83
Top Gainers
Company Price Change %Gain
Vedanta 298.00 +13.45 +4.73
Yes Bank 315.90 +12.00 +3.95
M&M 1,483.40 +51.80 +3.62
Coal India 271.00 +8.15 +3.10
Hindalco 242.75 +6.35 +2.69
Company Price Change %Gain
M&M 1,482.65 +50.95 +3.56
Coal India 271.05 +7.95 +3.02
Dr Reddys Labs 2,372.00 +58.30 +2.52
HDFC Bank 1,873.05 +35.85 +1.95
Adani Ports 401.95 +6.90 +1.75
Top Losers
Company Price Change %Gain
Tech Mahindra 500.75 -13.50 -2.63
Cipla 576.45 -14.00 -2.37
Bosch 19,730.30 -149.90 -0.75
ONGC 183.00 -1.35 -0.73
Power Grid Corp 198.85 -1.25 -0.62
Company Price Change %Gain
Cipla 575.85 -14.95 -2.53
ONGC 182.85 -1.60 -0.87
Asian Paints 1,119.95 -5.10 -0.45
TCS 2,547.85 -10.70 -0.42
SBI 312.75 -1.30 -0.41

Live TV

File is:/article-scroll-new.php