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FPIs pour Rs 64 bn in equities on easing oil prices, earnings expectations

This follows an outflow of over Rs 110 billion from the equities and more than Rs 250 billion from the debt markets last month

Press Trust of India  |  New Delhi 

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After pulling out massive funds from Indian equities last month, overseas investors have pumped in nearly Rs 64 billion in the segment in March so far on expectations of rebound in corporate earnings and easing of global prices.

However, they pulled out over Rs 106 billion from the debt during the month, depositories data showed.

Net inflow by foreign portfolio investors (FPIs) from equities stood at Rs 63.80 billion during March 1-16.

This follows an outflow of over Rs 110 billion from the equities and more than Rs 250 billion from the debt last month.

The positive sentiments in equity could be attributed to a likely strong rebound in corporate earnings over the next 2 quarters and easing of global prices providing a relief on the macro front, CEO and Chief Portfolio at Prabhudas Lilladher said.

"Equity had massive outflows in Feb (due to global macro concerns and high Indian valuations) which might have come back in March due to reasonable valuations/nations SWF (sovereign wealth fund) pumping money in India," Harsh Jain at said.

He further said that FPIs withdrew money from debt both February and March probably due to the surge in interest rates increasing in home as well as INR depreciation outlook due to crude price and fiscal deficit.

First Published: Sun, March 18 2018. 12:28 IST
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