After pulling out massive funds from Indian equities last month, overseas investors have pumped in nearly Rs 64 billion in the segment in March so far on expectations of rebound in corporate earnings and easing of global oil prices.
However, they pulled out over Rs 106 billion from the debt markets during the month, depositories data showed.
Net inflow by foreign portfolio investors (FPIs) from equities stood at Rs 63.80 billion during March 1-16.
This follows an outflow of over Rs 110 billion from the equities and more than Rs 250 billion from the debt markets last month.
The positive sentiments in equity could be attributed to a likely strong rebound in corporate earnings over the next 2 quarters and easing of global oil prices providing a relief on the macro front, Ajay Bodke CEO and Chief Portfolio Manager PMS at Prabhudas Lilladher said.
"Equity had massive outflows in Feb (due to global macro concerns and high Indian valuations) which might have come back in March due to reasonable valuations/oil nations SWF (sovereign wealth fund) pumping money in India," Harsh Jain COO at Groww said.
He further said that FPIs withdrew money from debt both February and March probably due to the surge in interest rates increasing in home markets as well as INR depreciation outlook due to crude price and fiscal deficit.
M-cap of 6 of top-10 most valued cos drops by Rs 52K cr
The combined market valuation of six of the top-10 most valued companies declined by over Rs 52,000 crore last week, with IT major TCS taking the steepest hit.
Reliance Industries Ltd (RIL), TCS, HDFC, HUL, ONGC and SBI saw losses in their market valuation for the week ended Friday. HDFC Bank, ITC, Maruti Suzuki India and Infosys however made gains.
TCS’ market capitalisation (m-cap) slumped by Rs 40,008.61 crore to Rs 5,40,881.96 crore. The m-cap of RIL dropped Rs 7,316.53 crore to Rs 5,70,435.32 crore and that of Oil & Natural Gas Corporation (ONGC) plunged Rs 2,887.48 crore to Rs 2,27,661.59 crore.
HDFC’s valuation dipped Rs 989.2 crore to Rs 2,99,893.64 crore and that of State Bank of India (SBI) fell by Rs 474.76 crore to Rs 2,18,045.68 crore. The m-cap of Hindustan Unilever Ltd (HUL) went down by Rs 324.67 crore to Rs 2,81,190.10 crore.
On the other hand, Infosys’ valuation jumped Rs 1,987.55 crore to Rs 2,56,087.40 crore. ITC added Rs 1,577.79 crore to Rs 3,17,976.53 crore and HDFC Bank Rs 1,115.32 crore to Rs 4,81,791.07 crore. Maruti’s valuation went up by Rs 782.38 crore to Rs 2,62,518.14 crore.