Foreign investors transferred in approximately ?20,400 crore in the domestic capital market by the mid of March, mostly driven by positive cues cross the globe.
The anticipation of a positive result from the US-China trade treaty along with the US Fed's decision of putting rate hike on hold, has favored the whole developing segments of market.
Moreover, foreign portfolio investors (FPIs) stood net buyers in the month of February as well, since they had already invested an amount that was more ?11,182 crore in capital markets both in equity and debt segment.
According to a recent data available with the depositories, net inflow in the equities mounted at approximately ?17,919 crore, whereas the debt market observed a mix of around ?2,499 crore over the spell of 15th March. Collectively, it transforms into a net investment of around ?20,418 crore in the nation's capital markets for the next few years.
"With the expectation on US interest rate hike declining, there has been increased flow into emerging markets. Locally, since February, there is a clear trend of FPIs buying beaten down segments such as banking and finance stocks...," Vidya Bala, Head - Mutual Funds Research at FundsIndia stated.
Himanshu Srivastava, senior analyst manager research at Morningstar Investment Adviser India, stated that it is a welcome variation in FPI trend. On the other hand, there are certain domestic issues for instance, sluggish economic growth as well as political ambiguity that might arise ahead of union election in India, he further added.