FPIs turn buyers, put in over $1 b this month

Foreign investors have pumped in nearly Rs 8,285 crore into the capital markets so far this month, after pulling out hefty funds in October, due to fall in crude oil prices, recovery in rupee and improvement in the liquidity situation.

The recent infusion comes following a net outflow of more than Rs 38,900 crore in October, which was the steepest withdrawal in nearly two years.

According to depositories data, foreign portfolio investors (FPIs) infused Rs 3,862 crore in the equity markets during November 1-16, and Rs 4,423 crore in the debt market, taking the total to Rs 8,285 crore ($1.14 billion).

FPIs had pulled out over Rs 21,000 crore from the capital markets (both equity and debt) in September. Before that, they had put in Rs 7,500 crore in July and August.

Himanshu Srivastava, senior analyst-manager research, Morningstar Investment Adviser India, attributed the latest inflow to fall in crude prices, recovery in rupee against the dollar and improvement in the liquidity situation.