InvestorQ : How have the FII flows been in the first 2 weeks of August 2020?
Sam Eswaran made post

How have the FII flows been in the first 2 weeks of August 2020?

Answer
user profile image
Moii Chavate answered.
1 month ago


Foreign portfolio investors or FIIs as they are popularly referred to, infused funds to the tune of Rs.28,203 crore overall into Indian financial markets in the first 2 trading weeks of August 2020. This is the best data flow since the first half of June 2020.

The data put out by NSDL reveals that the flows into equity as an asset class were Rs.26,147 crore in the first two weeks. However, this sharp inflow in equity was largely driven by the placement deal in Bandhan Bank, where the promoters largely pared their stake.

However, the good news is that the FIIs have shown consistent inflows on a daily basis, even as domestic mutual funds have been selling almost daily due to liquidity pressures. This has brought the foreign investors more into the limelight and there are more such blocks likely.

However, the bigger takeaway is on the front of debt market flows. FPIs also infused Rs.2056 crore into debt and this is the first time in the last five months that FPIs have been net buyers in debt. After the sharply higher inflation at 6.93%, FPIs are betting on higher yields on Indian bonds.