FIIs invested USD 3 billion in equities in November

Foreign institutional investors (FIIs) invested three billion dollars in Indian equities in November, which marks as the highest since March. The net November Foreign investor’s investment of USD 3.05 billion is the highest since the USD 5.1 billion in March. Their net investment so far this year stands at USD 8.86 billion.  This jump is attributed on the recapitalization of banks coupled with, global risk-on trade.

On 24 October, the govt announced a Rs. 2.11 trillion bank recapitalization plan for state-run lenders weighed down by bad loans, seeking to motivate the flow of credit.

Foreign institutional investment is used commonly in India to refer to outside companies investing in Indian financial markets.

FPIs infuse USD 2.6 billion in Indian capital markets in Nov

Foreign investors have infused USD 2.6 billion in the country's capital markets this month so far, boosted by govt’s announcement of recapitalizing PSU banks and India faring well in the World Bank's 'Ease of doing business index'.

This follows a net inflow of over Rs 19000 cr in capital markets including equity & debt, last month. Prior to that, FPIs had pulled out more than Rs 10,000 crore in Sept.

As per depository’s data, FPIs infused Rs 16,455 crore in equities during Nov 1-24, in addition, they put in Rs 754 crore in the debt market during the period under review, resulting in an inflow of Rs 17,209 crore.

The inflow can be the result of govt’s notice of recapitalizing public-sector banks, which is expected to boost up lending and propel economic growth.

In November, what triggered inflow was subsequent on news about India faring well in the World Bank's “Ease of doing business index” and a jump in core sector growth. Further, the US-based Moody's has newly upgraded India's sovereign credit rating by a notch to 'Baa2' with a stable outlook.

Overall, FPIs have invested Rs 53,800 crore in equities this year and another Rs 1.46 lakh crore in debt markets.