InvestorQ : How has the foreign portfolio flows been in the first ten days of October 2020?
Arusha Ray made post

How has the foreign portfolio flows been in the first ten days of October 2020?

Answer
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Sam Eswaran answered.
2 weeks ago


It may be recollected that in the month of September 2020, we had seen FPI outflows after a gap of almost 4 months. The outflows were concentrated in the last 10 days of September when the Sensex corrected close to 3000 points. Fortunately, things turned in Oct-20.

In the first nine days of October 2020, foreign portfolio investors or FPIs infused a net amount of Rs.1086 crore into Indian markets. However, if you break up the numbers; they pumped in Rs.5245 crore into equities but withdrew Rs.4159 crore from debt.

On the equity front, the strong net inflow was driven by a mix of better Q2 result expectations, rise in GST collections and falling COVID numbers. All these have given the first high frequency indication that growth may be at least getting to pre-COVID levels.

The outflows from debt could be more on concerns over rising bond yields due to spiralling fiscal deficit. However, global investors are likely to get some comfort from the monetary policy which has committed to keep rates at low levels through most of 2021.