Comments
Investments in Indian capital through participatory notes (P-Notes) rose to ₹1.02-lakh crore till October-end, making it the highest in 43 months.
P-Notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.
According to SEBI data, the value of P-Note investments in Indian markets – equity, debt, and hybrid securities – was at ₹1,02,553 crore by October-end. This was the highest level since March 2018, when P-notes had invested ₹1,06,403 crore. Abhay Agarwal, Founder and Fund Manager, Piper Serica, a SEBI-registered PMS, said that the overall investment via P-notes increased by more than ₹5,000 crore in October to hit a new high of ₹1.02-lakh crore.
Equity value
“More interestingly, the value of equity went up by almost ₹7,000 crore, while the value of debt investments fell by ₹2,000 crore. This change in stance by FPIs is not surprising since there are expectations that long-term interest rates have hit a bottom and faced with inflationary pressures, RBI will be forced to increase rates in 2022,” he added.
At the end of September this year, the investment level was at ₹97,751 crore and ₹97,744 crore by August-end. The figure for July was revised to ₹85,799 crore from ₹1,01,798 crore posted earlier.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.