The foreign portfolio investors (FPIs) infused a net amount of Rs 90.31 billion into the Indian capital markets in May, according to government data. The overseas investors pumped in the market on expectations of more business-friendly measures following the BJP’s landslide victory in the general elections. Interestingly, foreign investors were net sellers for the first three weeks of May, but the tide turned just ahead of the announcement of election results, reports PTI. According to the data, the FPIs infused a net sum of Rs 79.19 billion into equities and Rs 11.11 billion in the debt market during May 2-31, taking the cumulative net investment to Rs 90.31 billion. Prior to this, they had invested a net Rs 160.93 billion in April, Rs 459.81 billion in March and Rs 111.82 billion in February in the capital markets (both equity and debt). Last week, the Bharatiya Janata Party (BJP) won over 300 seats on its own out of 542 seats in the Lok Sabha elections — the first back-to-back majority for a single party since 1984. The victory of the Narendra Modi-led coalition will ensure continuation in reform measures initiated during the NDA’s first term, experts said. During May 2-17, foreign investors pulled out a net Rs 63.99 billion from the markets amid pre-election uncertainty.
Source – Financial Express.
