FPIs pump $1 bn into India in first 10 days of September

Foreign investors have pumped in nearly Rs6,800 crore ($1 billion) into the country's capital markets so far in September, driven by global and domestic factors.

The latest infusion comes on top of a whopping inflow of Rs25,904 in the preceding two months (July-August). Prior to that, foreign portfolio investors (FPIs) had pulled out a total of Rs4,373 crore from the capital markets (equity and debt) in June and July.

Experts attribute the latest flurry in inflow to factors, including good and widespread monsoon, better corporate earnings, good progress on rollout of the goods and services tax (GST), and positive data coming from the US economy.

Sentiment also rode high after domestic passenger vehicle sales grew for the 14th straight month in August, they added.

According to depositor data, net investment by FPIs stood at Rs3,178 crore in equities during 1-9 September, while the same for debt markets was at Rs3,617 crore, taking the total inflow to Rs6,795 crore ($1.02 billion).