Foreign investors pour Rs 14,610 crore into Indian markets in October
International portfolio managers reversed course during October by purchasing 14,610 crore rupees worth of Indian securities after pulling money from the market for three straight months. Strong quarterly results from major corporations, an interest rate reduction by the Federal Reserve and expectations of advancing commercial discussions between Washington and New Delhi helped drive the turnaround.
Repository records indicate overseas funds had extracted 23,885 crore rupees during September, 34,990 crore rupees in August and 17,700 crore rupees in July before shifting direction. Market analysts attributed the change to improved global risk appetite and appealing prices following recent declines in share values. Moderating inflation rates, anticipated monetary policy adjustments and government initiatives like goods and services tax reforms enhanced the country’s attractiveness to external capital.
Foreign buyers also put 3,507 crore rupees into debt instruments through standard channels while withdrawing 427 crore rupees via voluntary retention mechanisms. Analysts suggest sustained demand could lift corporate profits further and maintain reasonable valuations. The active initial public offering market and substantial premiums investors accept for new listings are encouraging foreign institutions to participate in primary share sales.
