New Delhi: Encouraged by the positive sentiment created after the Budget and the Reserve Bank’s liberal stance, Foreign Portfolio Investors (FPIs) have so far raised Rs 23,102 crore in the domestic market in February.
According to depository data, during February 3 to February 20, FPIs have infused Rs 10,750 crore in equity and Rs 12,352 crore in the bond category. During this period, the total investment of FPIs stood at Rs 23,102 crore.
FPIs have been net investors in the domestic market since September last year. Himanshu Srivastava, senior analyst manager (research), Morningstar Investment Advisor India, said, “There are a number of factors, including the positive post-Budget sentiment and the recent monetary policy review by the Reserve Bank, that have kept the foreign economy soft. And even after the slow growth rate of quarterly results of companies, investments are being made in the domestic market. “
He said that the removal of dividend distribution tax in the budget and raising the limit of FPI in corporate bonds from nine percent to 15 percent has also helped to restore the confidence of foreign investors.
