INSUBCONTINENT EXCLUSIVE:
New Delhi: Foreign investors have pumped in a little over Rs 6,700 crore into the Indian capital markets so far this month on improvement on
the macro front, better corporate earnings and correction in the mid and small-cap space.
The latest inflow comes following a net infusion
of over Rs 2,300 crore in the capital markets -- both equity and debt -- last month
Prior to that, overseas investors had pulled out over Rs 61,000 crore during April-June.
According to the latest depository data, foreign
portfolio investors (FPIs) pumped in a net sum of Rs 2,048 crore into equities during August 1-24 and a net amount of Rs 4,662 crore into
the debt market, taking the total to Rs 6,710 crore.
After three months of huge outflows from April till June, analysts said it is
encouraging to see FPIs making a comeback in July and August.
"The recent net inflow could be attributed to improvement on the macro front,
better earnings from corporate, correction in the mid and small-cap space and positive observations of IMF on India," said Himanshu
Srivastava, Senior Analyst – Manager Research at Morningstar.
"The direction is definitely positive
However, the quantum of inflows from FPIs is much lower than what we have seen in the past when they come with full conviction
It indicates that there is a fair bit of uncertainty and cautiousness among FPIs at the moment," he added.
Overall, so far this year, FPIs
have pulled out more than Rs 2,100 crore from equities and nearly Rs 37,000 crore from the debt markets
