Foreign portfolio investors have infused a net sum of Rs 1,624 crore into the domestic capital markets in January so far. As per latest depositories data, Foreign portfolio investors put-in a net of 13,304 crore rupees, in equities and withdrew a net 11,680 crore rupees from the debt segment between January 1 and 24. This translates into a total net inflow of 1,624 crore.
The latest investments came despite challenges such as enhanced geopolitical tension between the US and Iran and dwindling domestic economic growth. On the domestic front there are some signs of India shaking away the slowdown with business activity picking up and this is reflecting in the investments coming into equities. Besides, after the limit to which FPIs can invest in debt instruments has been increased, more inflows into the debt category can be expected.