Investments in the Indian capital market through syndicated bonds (P bonds) rose to Rs 89,143 crore as of end-February, as experts say the positive trend is likely to continue in the coming months on the back of strong corporate earnings forecasts by Company of India which will excite investors. aliens.
P Bonds are issued by Registered Foreign Portfolio Investors (FPIs) to foreign investors who wish to be a part of the Indian stock market without directly registering themselves. However, they do need to undergo a due diligence process.
According to data from the Securities and Exchange Board of India (SEBI), the value of P-note’s investments in Indian markets – equities, debt and hybrid securities – stood at Rs 89,143 crore at the end of February, compared to Rs 87,989 crore. At the end of January.
At the end of December 2021, the investment level was Rs 95,501 crore.
Of the total Rs 89,143 crore invested across the road up to February 2022, Rs 79,747 crore has been invested in equities, Rs 9,224 crore is in debt, and Rs 172 crore is in hybrid securities.
Sonam Srivastava, founder of Wright Research, said foreign investors noticed a slight recovery in February compared to January. Outstanding global economic factors and the conflict between Russia and Ukraine may have put additional pressure on already nervous global investors.
Moreover, the Federal Reserve’s decision to increase interest rates provides a good and safe opportunity for global investors to consider investing in US Treasuries, she said.
“The upcoming quarters of corporate earnings are expected to record strong growth numbers that will instill a sense of confidence among foreign investors. Also, the China+1 sentiment will benefit the Indian manufacturing sector. Thus, in the next few months we expect PNs to grow in the range of 1.5-2 percent each. Month “.
Divam Sharma, founder of Green Portfolio, a SEBI-registered portfolio management service provider, said the past few months have seen huge outflows of equity from foreign investment institutions. The total outflow remains around 4-5 per cent of the total FPI investment in India.
According to him, India’s GDP growth outlook remains strong, despite global inflation and commodity-related turmoil.
“We believe the massive sell-off from FPI in Indian stocks will now come to a halt and then we will see fresh growth in FPI given the strong fundamentals of the Indian economy,” Sharma added.
In contrast to the investment in P securities, the assets in the custody of FPI decreased to Rs.49.75 thousand crore at the end of February from Rs.52.12 thousand crore at the end of January.
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