FPI invests Rs 5000 cr in debt market this month
DSIJ Intelligence / 15 May 2017
For FPI's the differential spread between 10-yr bond yields in the US and India is still around 4.5-5 per cent. This spread makes it attractive for FPIs to look at Indian debt market.
Foreign portfolio investors have pumped in over Rs 5,000 crore in debt market in the month of April so far, taking advantage of the strengthening Indian rupee.
Stable outlook for Indian rupee has been one of the key factors influencing the FPI investment decision.
The figures for debt market net inflows stand impressively compared to that of the equity markets which stand at a paltry Rs 290 crore.
The rich valuations could be the reasons for lower net inflow into the equity markets as markets have had a steady run up for past four months.
For FPI's the differential spread between 10-yr bond yields in the US and India is still around 4.5-5 per cent. This spread makes it attractive for FPIs to look at Indian debt market.
The net inflows in the Indian debt market have been over Rs 51,679 crores in the last three months(February-April), as per the latest data.
FPIs were seen withdrawing funds from the Indian debt markets in the month of January to the tune of Rs 2,300 crore.
With the net inflows for the current month, the total investment in debt market has now crossed over Rs 54,000 crore this year alone.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.