Investments into India’s stock market through offshore derivative instruments (ODIs), also known as participatory notes (P-notes), hit a 27-month high of ₹83,114 crore in November, according to data released by SEBI. This is the highest inflow through this route since August 2018.

In October, investments had touched ₹78,686 crore, which was then the highest in 14 months.

Nearly 90 per cent of the P-note investments in November went into the equity market.

P-note is an instrument issued by a registered foreign institutional investor to overseas investors who want to invest in Indian stock markets without registering themselves with SEBI. The investment level had fallen to a 15-year low of ₹48,006 crore in March.

Positive signs

Market experts said the recent effort by the Centre to attract foreign funds will keep the momentum going in the coming months. FPIs are taking long positions on the Indian economy that they see reviving early.

India’s industrial output rose in October for the second consecutive month after six months of contraction. All the three broad areas of the manufacturing industry have also recorded expansion, with growth led by consumer goods, which was the only sector to see a strong rate of growth.

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