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.