April-May Inflows From Foreign Portfolio Investors Into Indian Equities Reach 17-Year High At Rs 29,113 Crore

The first two months of FY20 have seen Rs 29,113 crore being poured into Indian equities by foreign portfolio investors (FPI), the highest level in the time span under consideration in the last 17 years, reports The Hindu.

In fact, the second highest point in FPI inflows to Indian equities in the last 17 years for April and May was back in 2013-14, when they stood at Rs 27,583 in the two months.

Interestingly, the first two months of FY19 had seen foreign investors withdrawing funds from the Indian market, taking out Rs 15,662 crore.

The return of the Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP), which is likely to double down on reforms in its second run at power, seems to have bolstered the confidence of international investors.

CEO of IIFL Securities Arindam Chanda remarked that the re-election of the BJP with a greater majority than before is seen as a sign of stability for the international community.

“The inflows could be even higher now as some large foreign portfolio investors, who were waiting for election results, will now invest in Indian equities. If the government continues with the right economic reforms, brings growth back on track and manages fiscal deficit well, we could see a prolonged period of foreign fund interest in India,” he added.