InvestorQ : How did foreign portfolio investors invest in the month of August into India?
Dawn Cherian made post

How did foreign portfolio investors invest in the month of August into India?

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Mitali Bhutta answered.
3 months ago
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FPIs were overall net buyers in the Indian market to the tune of Rs.16,459 crore in the month of August, but this was dominated by debt inflows. For example, FPIs infused a sum of Rs.2,083 crore in equities but a much larger Rs.14,376 crore into debt. The debt flows were driven by 2 factors. Firstly, the bond spreads over the US yields were widening and secondly, the rupee had been supportively strong, adding to bond returns for FPIs.

The net inflow of Rs.2,083 crore into equities in August needs to be broker up to get a better understanding. For example, FPIs actually sold $827 million in the secondary markets but infused close to $1,102 million through the IPO route. More than any form of secondary market buying in equities, it was the IPO applications from QIBs that saved the day.

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