FPIs on bullish stance; infuse over Rs 15,000 cr in debt market in Feb

Foreign Portfolio Investors (FPIs) continued their bullish stance on the country's debt markets with a net infusion of over Rs 15,000 crore so far this month, on the back of inclusion of Indian government bonds in the JP Morgan Index along with relatively stable economy. This followed a net investment of Rs 19,836 crore in January, making it the highest monthly inflow in more than six years. This was the highest inflow since June 2017, when they infused Rs 25,685 crore. On the other hand, foreign investors pulled out more than Rs 3,000 crore from equities during the period under review. Before this, they withdrew a massive Rs 25,743 crore in January, data with the depositories showed. "The main trigger for this divergent trend in equity and debt is the high valuation in the Indian equity market and the rising bond yields in the US," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. Himanshu Srivastava, Associate Director - Manager Research, Morningstar
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