BackFPIs get back to buying mode, pump in Rs2,300 crore in 3 days
According to depository data, FPIs infused a net sum of Rs1,246 crore in equities during 1-3 February and another Rs1,098 crore in the debt segment
Premium
New Delhi: After four months of selling frenzy, overseas investors turned net buyers in February and pumped in over Rs2,300 crore in the capital market over the last three sessions, enthused by clarity on Foreign portfolio investment (FPI) taxation.
The latest inflow followed a net pullout of Rs80,310 crore from equity and debt together in the past four months (October-January). Prior to that, FPIs had invested over Rs20,000 crore in the capital market. According to depository data, FPIs infused a net sum of Rs1,246 crore in equities during 1-3 February and another Rs1,098 crore in the debt segment, translating into a total inflow of Rs2,344 crore.
Finance minister Arun Jaitley, in his Budget speech, proposed that category I and II FPIs should be exempted from taxation on indirect transfers, which cheered up investors. “No change in long-term capital gains tax on equities has lightened investors’ fears on transaction cost," said Vinod Nair, head of research, Geojit BNP Paribas Financial Services.
Meanwhile, Nikkei Markit India Manufacturing PMI in January rebounded from the demonetisation downturn by increasing to 50.4, from 49.6 in December, amid rising orderbooks, production as well as buying levels and expansion in the sector.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
