Particle.news
Download on the App Store

Foreign Investors Return to India With October Equity Inflows as Bond Buys Reach Seven-Month High

Analysts say a late-October Fed rate cut helped revive risk appetite for India.

Overview

  • FPIs injected Rs 14,610 crore into equities in October, ending a three-month stretch of net selling, according to NSDL data.
  • Equity withdrawals in the prior quarter totaled about Rs 77,000 crore, with outflows of Rs 17,700 crore in July, Rs 34,990 crore in August and Rs 23,885 crore in September.
  • Debt purchases were robust as FPIs bought Rs 13,397 crore of government securities under the Fully Accessible Route, the strongest monthly FAR inflow in seven months per CCIL.
  • Within debt, FPIs invested Rs 3,507 crore under the general limit and withdrew Rs 427 crore through the voluntary retention route in October.
  • Year to date, FPIs remain net sellers by roughly Rs 1.4 lakh crore, with the durability of October’s turn seen hinging on rupee stability, corporate earnings, progress on USIndia trade talks and the global rate path.