On a day when the key indices scaled new life-time highs on strong inflows, a research report has said foreign portfolio investors (FPI) are on course to pump in a record $28-35 billion by March--which is a four- five-fold spike over FY17.
The benchmark indicies-Sensex and the Nifty-has scaled 28 per cent in calendar year 2017 over 2016 and since then the markets scaled new peaks in the first week of the new year with both the indices closing at new life-time peaks with today being another record close.
FPIs had pumped in Rs 48,400 crore or $7 billion into the domestic equities in FY17 and this is set to witness a four-five-fold increase in the year to March at $28-35 billion.
“We expect net inflows to be Rs 1.8-2.2 trillion ($28-35 billion) for FY18. Already they have pumped in Rs 95,600 crore ($15 billion) in the first half of this fiscal, against Rs 48,400 crore ($7 billion) for the entire FY17,” domestic rating agency Icra said in a report on Friday.
According to Icra senior vice president Karthik Srinivasan, FPI investments in the current fiscal are driven by the debt segment which received a net inflow of Rs 1.17 trillion in the April-November period with positive net inflows across all months.