According to the provisional Exchange data, the Foreign portfolio investors (FPIs) continue to bet on India with their net investments in the Indian equities market already scaling USD31.7 billion level thus far in the fiscal year 2020-21.
This is the highest ever FPI inflow in a financial year since FY 2013 when they pumped a net sum of USD25.8 billion or Rs. 1.4 trillion into Indian equities.
Notably, after Nirmala Sitharaman's wealth and wellness-focused Budget 2021, the FPIs infused in more than USD 1 billion in Indian equities in the last two days. As per exchanges' provisional data, on February 2, Foreign portfolio investors put in USD 847 million or Rs. 6182 crore into Indian equities.
"Foreign investors have been steady buyers of Indian equities since the Nifty50 was around the 10,700 levels. The overall improvement in the Indian economy has made them realise that this is not a flash in the pan. Budget 2021 proposals have reinforced their positive stance on India. Plus, there is ample liquidity globally that has found its way into emerging markets, including India," explains U R Bhat, managing director at Dalton Capital.
As per the estimates of Morgan Stanley, an all-time high US dollar inflow was witnessed during the last week to dedicated Asia or emerging market equity fund amounting to USD 8.7 billion, which marks the 18th consecutive week of inflow into the asset category.
The robust inflow in Indian equities pushed the benchmark indices to record high, with Sensex and Nifty scaled new record highs in today's trading session.
Government will sell its stake in Life Insurance Corporation
Sensex, Nifty zoom, top stock to watch
Adani Enterprises Q3 profit climbs 362 pc to Rs 426 cr