Friday, February 26, 2021
Home Business News Pumping in $33.8 billion so far this fiscal, FPIs' total holding at...

Pumping in $33.8 billion so far this fiscal, FPIs’ total holding at record $592.5 billion – Times of India

MUMBAI: Foreign portfolio investors (FPIs) have pumped in a whopping $33.8 billion into domestic equities and debt till February 15 this fiscal year — the highest since FY15 when it was nearly $46 billion –taking their net outstanding investments to a record $592.5 billion, as per a report.
Of the total FPI assets of $592.5 billion, $537.4 billion were in equities and $51.38 billion in debt, according to the data collated by Care Ratings.
The maximum holding is in financial services sector at $191.3 billion, followed by software ($76.1 billion), oil & gas ($50 billion), automobiles & auto components ($26.9 billion, pharmaceuticals & biotechnology ($22.8 billion), sovereign ($21.7 billion-debt), household & personal products ($20.2 billion), capital goods ($19.8 billion), food, beverages & tobacco ($15.7 billion) and insurance ($13.4 billion).
These 10 sectors account for around 78 per cent of total assets under FPI custody.
Of the close to $34 billion inflows this fiscal so far, as much as $8.4 billion came in December alone, the report said.
According to Care data, net FPI inflows were negative in both FY19 as well as in FY20. In FY20 the net inflows were at (-) $3 billion after the bloodbath in the markets following the announcement of the coronavirus as a global pandemic in March last year, leading to a 35 per cent plunge in the markets in that month alone.
After hitting an all-time high of $45.7 billion in FY15, net FPI investments have been fluctuating between positive and negative territories, with FY16 seeing a net pullout to the tune of $2.5 billion, and another major pullout of $5.5 billion in FY20, according to the data collated by Care Ratings.
Significantly, debt outflows have outnumbered inflows since FY16, registering negative net investments. However, the net debt flows were $18.5 billion in FY18.
Investors from the US account for 34 per cent of the total assets under custody, followed by Mauritius (11 per cent), Singapore (8.8 per cent), the Luxembourg (8.6 per cent), Britain (5.3 per cent), Ireland (4 per cent), Canada (3.4 per cent), Japan (2.8 per cent), and the Netherlands and Norway with a share of 2.4 per cent each.
These 10 countries account for 83 per cent of total FPI assets under custody.
In terms of equity, investors from the US account for nearly 37 per cent of the total, followed by Mauritius with a share of 11 per cent.
Singapore accounts for 29 per cent of the total debt investments followed by the Luxembourg at 11 per cent.
Singapore and the US account for a major proportion of hybrid investment with a share of 41 per cent and 28 per cent, respectively.
When it comes to the strong correlation between FPI flows and movements in the stock indices, it can be noted that $1 billion inflow over a period of three months can increase the sensex by 1.6 per cent.

Source link

In this blog our main motive is to provide you all kind of latest information about technology, politics, sports, and health. If you want to read this information then you should have to visit our website. This information will help you to increase your knowledge.


Please enter your comment!
Please enter your name here

Most Popular

New York prosecutors obtain Trump’s tax records: Spokesman – Times of India

NEW YORK: New York prosecutors investigating former president Donald Trump's finances have received his tax returns following a marathon...

Weight loss story: “I replaced wheat chapatis with multigrain chapatis” | The Times of India

My breakfast: For my breakfast, I used to usually take something like a white egg omelette/poha/ besan chilla or brown bread sandwich.My lunch:...

Indian Newspaper Society asks Google to raise publisher share in ad revenue to 85% – Times of India

NEW DELHI: Indian Newspaper Society (INS), which represents print media houses, on Thursday asked Google to increase...

5 necessary diet changes women over 50 should make | The Times of India

As we age, our bone density declines, making us prone to osteoporosis. Surprisingly, women are more prone to developing osteoporosis as compared to...

Recent Comments