FPIs upbeat on debt mkt

New Delhi: Foreign investors made a significant turnaround and injected over Rs1,500 crore into Indian equities in February, reversing the massive outflows seen in the preceding month, primarily due to robust corporate earnings and positive economic growth. Additionally, Foreign Portfolio Investors (FPIs) continued to be bullish on the debt markets as they put in over Rs22,419 crore during the month under review, data with the depositories showed. Looking ahead to March, the outlook for FPI flow appears promising, provided the current economic trajectory and corporate performance sustain their positive momentum, potentially continuing to attract foreign investment into Indian equities, Mayank Mehraa, smallcase manager and principal partner at Craving Alpha, said.

According to the data, FPIs invested a net sum of Rs1,539 crore in the Indian equities in February. This came following a net withdrawal of Rs25,743 crore in January. The latest influx can be attributed to robust corporate earnings and positive economic growth trends observed during the December quarter. Despite perceived stretched valuations in the previous month, the compelling performance of companies justified their value, enticing FPIs to re-enter the market, Mehraa said.