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Foreign investors were the net buyers in the Indian capital markets for the third consecutive month of April, rising to Rs 17,219 crore thanks to favorable macroeconomic conditions and abundant liquidity.
India is one of the main recipients of foreign equity flows between emerging markets since February 2019, thanks to the positive global climate, improved growth prospects, support macros, and more. the accommodating stance adopted by the RBI, said experts.
Foreign investors had invested a net sum of Rs. 45,981 crores in March and Rs. 11,182 crores in February on the capital markets (equities and debts).
According to the latest data on depositories, foreign portfolio investors (REITs) injected a net amount of Rs. 21,032.04 into shares, but released a net amount of Rs. 3,812.94 from the 1st December debt market. as of April 26, bringing the total investment to Rs 17,219,10 crore.
"The expectation of a slowdown in the global economy has led several central banks to adopt an accommodative stance on interest rates to revive their declining economies.
"This bodes well for emerging markets because it has helped improve global liquidity that has entered emerging markets and that India is getting its share," said Himanshu Srivastava, Senior Research Analyst and Director of Research at Morningstar.
Alok Agarwala, senior vice president and head of investment badysis at Bajaj Capital, said the decline in foreign flows in the debt markets was "a rise in crude oil prices and worries about "over supply" because it has reduced the hope of further decline in yields.
The sustainability of economic growth, the behavior of crude oil prices and the formation of a stable government at the Center will play an important role in the continuation of the flows of IPF, he added.
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