P-notes investment in Indian markets at 4-month high of ₹95,911 crore in April

Investment in the Indian capital markets through participatory notes (P-notes) increased to ₹95,911 crore in the end of April from ₹88,600 crore in March-end, PTI reported citing Sebi data. This includes the value of P-note investments in Indian equity, debt, and hybrid securities.

This was the second consecutive monthly increase in the investment level through this route as it was at ₹88,398 crore in February-end. The investment at the end of January stood at ₹91,469 crore.

Of the total ₹95,911 crore invested through P-notes till April this year, ₹86,226 crore was invested in equities, ₹9,586 crore in debt and ₹100 crore in hybrid securities, the report added.

Meanwhile, foreign portfolio investors (FPI) have poured in ₹11,631 crore in the Indian equities in April and ₹806 crore in the debt market. FPI’s assets under custody increased to ₹50.85 lakh crore in April from ₹48.71 crore in the preceding month, as per data available on NSDL.

A major chunk of FPI money was invested in the financial services sector, followed by Oil & Gas, IT, FMCG and automobile sectors.

P-notes are issued by registered FPIs to overseas investors who wish to invest in the Indian stock market without directly registering themselves.

The benchmark indices, Sensex and Nifty, have surged to near all-time high amid persistent inflow of foreign capital into the Indian market. The Nifty Bank index and the Nifty Midcap 100 index have already tested their fresh record highs.

Also Read: Midcap index outshines benchmarks while Nifty, Sensex take a pause near all-time high level

The Nifty index has rallied 7.5% in the last three months amid improving domestic macros, expectations of strong economic growth and better earnings from India Inc.

Shrey Jain, Founder and CEO, Sasonline, told PTI that one of the primary drivers behind the growth in P-notes investment is India’s robust economic growth, which positions the country as an appealing destination for FPI investments.

According to him, the rise in P-note investments can be attributed to various other factors, including a substantial consumer base, significant market potential, and a demographic advantage, among others.