New Delhi: Foreign investors poured in close to Rs 17,220 crore on a net basis into Indian equities in February this year, the highest since November 2017, amid clarity on government spending plans and positive sentiments.
Foreign portfolio investors had pumped in a net amount of around Rs 19,728 crore into Indian stocks in November 2017. As per the latest data from the depositories, foreign investors pumped in Rs 1,17,899.79 crore into equities and pulled out Rs 1,00,680.17 crore in February, a net investment of Rs 11,183 crore into the stock market. In the previous month (January 2019), however, foreign portfolio investment (FPI) outflows from equities stood at Rs 5,263.85 crore.
Foreign investors have turned into net buyers in February mainly on account of clarity on government spending post budget and value buying in several pockets, according to Vidya Bala, Head - Mutual Funds Research at Funds India, said. She further said that inflows into the equity market can be attributed to positive view on budget and dovish stance taken by the central bank.
"The Reserve Bank's decision to change its stance to neutral from calibrated tightening while cutting the repo rate by 25 basis points cemented the belief that bringing growth back is on the top of its agenda," Alok Agarwala, Head of Investment Analytics at Bajaj Capital, said.