Foreign portfolio investors pull out over Rs 1,900 cr from debt market in February amid escalation of cross-border tensions

In January, the net FPI outflow -- from both equity and debt -- stood at Rs 5,360 crore

Press Trust of India February 25, 2019 08:43:37 IST
Foreign portfolio investors pull out over Rs 1,900 cr from debt market in February amid escalation of cross-border tensions
  • Tensions have escalated following terror attack in Pulwama, Jammu and Kashmir that killed 40 CRPF jawans earlier this month

  • In 2019, foreign investments have shown mixed trends. Last month, FPIs were net sellers and so far in February, they are net buyers

  • Besides cross-border tensions, another major focus area for the FPIs would be the outcome of the general elections

New Delhi: Foreign portfolio investors sold debt securities worth over Rs 1,900 crore in February amid an escalation of cross-border tensions in the wake of Pulwama terror attack.

Latest data from the depositories showed that overseas players pumped in Rs 2,039 crore into equities even as they dumped debt during February till 22.

In January, the net FPI outflow -- from both equity and debt -- stood at Rs 5,360 crore.

A total of Rs 1,949 crore was withdrawn during the 1-22 February period. However, there was higher infusion in equities, there is a net inflow of little over Rs 98 crore for the period under review, according to the data.

Foreign portfolio investors pull out over Rs 1900 cr from debt market in February amid escalation of crossborder tensions

Representational image. News 18.

Himanshu Srivastava, senior analyst manager research at Morningstar Investment Adviser India, said the recent selling by FPIs "could be attributed to the increase in cross-border tensions between India and Pakistan.

Tensions have escalated following terror attack in Pulwama, Jammu and Kashmir that killed 40 CRPF jawans earlier this month.

"For a long time, FPIs have been adopting a cautious stance towards India, and the recent developments would have further dampened the sentiments," Srivastava said.

In 2019, foreign investments have shown mixed trends. Last month, FPIs were net sellers and so far in February, they are net buyers.

According to Srivastava, it is too early to predict the flow of investments as they are guided by short-term trends and become event specific.

Besides cross-border tensions, another major focus area for the FPIs would be the outcome of the general elections and they have been adopting a wait-and-watch stance in anticipation of a concrete sign of economic growth, he added.

Elections are expected in April and May.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Foreign portfolio investors sell stake in Manpasand Beverages; Nomura, Parvest Equity exit
Business

Foreign portfolio investors sell stake in Manpasand Beverages; Nomura, Parvest Equity exit

Foreign portfolio investors (FPIs) held 21.56 percent stake in Manpasand Beverages at the end of the previous quarter -- 31 March 2018

Sensex extends gains, climbs 181 pts on global cues, ICICI surges over 6%; Rupee slips 7 paise against dollar in early trade
Business

Sensex extends gains, climbs 181 pts on global cues, ICICI surges over 6%; Rupee slips 7 paise against dollar in early trade

BSE Sensex advanced about 181 points in early session today, maintaining its positive form for the second straight day on unabated buying by domestic institutional investors

Investment via P-notes hits over nine-year low of Rs 79,548-cr in Septemer, SEBI data shows
Business

Investment via P-notes hits over nine-year low of Rs 79,548-cr in Septemer, SEBI data shows

The decline in investment could be attributed to several measures taken by the SEBI to stop the misuse of the controversy-ridden participatory notes, experts said.