INSUBCONTINENT EXCLUSIVE:
The debt segment may contribute around $3.5 billion
The total flows, however, still remain less than half of the all-time high annual inflow figure of $42.4 billion recorded in 2014.
During
2019, the biggest net inflows were seen in March and November, while August and January witnessed net outflows, official data showed
Also, the net equity inflow during the year crossed the Rs 1-lakh-crore mark.
The data further showed that FPIs were big sellers in the
stock market in July and August, while they turned in large net buying figures in March, November and April
In the debt segment, FPIs net bought substantial amounts in March and August, while they were big sellers during April, December and
November.
FPI flows in 2020 are expected to see a boost from the recent government directive under which the statutory foreign holding limit
in a company was changed from 24 per cent to the sectoral foreign investment limit effective April 1, 2020
MSCI is one of the most followed indices among foreign fund managers and a large number of foreign funds are benchmarked to this
Institutional Equities that tracks foreign fund investments coming into India showed that, in 2019, foreign-origin mutual funds registered
as FPIs here have maintained their total assets under management in the country at about $150 billion through the year, while assets
management by pension funds showed a marginal rise.
The year also saw the government increasing the limit for foreign funds to invest in
According to a report by IMF, this decision could help Indian bonds enter the global bond indices
At present, given the huge restrictions on FPIs to invest in gilts, Indian bonds are not eligible to be among the constituents of those
