Equity mutual funds saw an inflow of close to Rs 4,900 crore in January, taking the total fund infusion to about Rs 55,700 crore by 'optimistic' investors in the first 10 months of 2016-17 fiscal.
After four months of selling frenzy, overseas investors turned net buyers in February and pumped in over Rs 2,300 crore in the capital market over the last three sessions, enthused by clarity on FPI taxation.
Punching holes in the government's claims on success of Make in India campaign, an analysis by two renowned experts reveals that the programme may not have yet made any impact on FDI into focus sectors.
Mutual fund managers attributed the inflow in equity funds to the matured investor behaviour who are staying put and using volatility to invest additional money in to these schemes
In nine out of the 11 months till November, equity schemes saw more money coming in than going out. The not so good newsâ€”investors were not as enthusiastic about equity schemes this year as they were in 2015. Inflows of Rs 44,772 crore, were almost half of the Rs 90,603 crore received in 2015
Mutual funds registered an inflow of a staggering Rs 13,610 crore in equities in November, mainly on aggressive buying by fund managers due to a sharp plunge in stock markets.
The Reserve Bank of India (RBI) hiked the cash reserve ratio (CRR), the percentage of cash deposits that banks have to maintain with RBI â€“ at 100% of the deposits (NDTL) accrued between September 16 and November 11 as incremental cash reserve ratio.
Foreign investors pumped in more than Rs 20,000 crore into the capital market in September, making it the highest net inflow in 11 months.
Equity mutual funds witnessed an inflow of Rs 6,505 crore in August, making it the highest in a year, mainly on account of optimistic investor sentiment.
Staying with the bullish momentum, foreign investors have deployed over Rs 7,700 crore in the Indian stock market so far this month, driven by global and domestic factors.
India witnessed inflow of a staggering USD 1.2 billion from listed foreign funds in July after seeing an outflow of USD 332 million in the preceding month, says a report.
With this, the total net inflow in MF schemes has reached Rs 1.84 lakh crore in the April-January period of the current fiscal. In comparison, MFs had witnessed an inflow of Rs 1.95 lakh crore in the year-ago period.
Mutual Fund (MF) is an investment vehicle that pools funds from many entities for investing in securities such as stocks, bonds, money market instruments and similar assets.
The country's 44 fund houses together had an average assets under management (AUM) of Rs 11.06 lakh crore at the end of December 2014, compared to Rs 13.39 lakh crore registered in December-end last year, as per latest data available with Association of Mutual Funds in India (AMFI).
A 50 basis points repo rate cut and slew of policy measures announced by the Reserve Bank in the recent monetary policy review could attract an average annual flow of Rs 48,000 crore in government bonds from overseas investors for the next few years, says a report.
Once a symbol of fickleness, inflows into local equity mutual funds began with a trickle in May 2014 but soon developed into a steady stream, holding steady even in the face of intense volatility that has been witnessed in markets recently.
Analysts expect inflows to accelerate further going ahead following the passage of the Insurance Bill in Parliament and assurances in the Union Budget to revisit controversial issues like General Anti-Avoidance Rule (GAAR).
Overseas investors have pumped in a staggering amount of over Rs 1 lakh crore into the Indian stock market since the beginning of the year, primarily on account of government's reform agenda.
As per the latest data available with the Securities and Exchange Board of India, investors have put in Rs 1,00,181 crore in mutual fund schemes (MF) last month after pouring in a staggering Rs 1,13,216 crore in July.
In comparison, foreign institutional investors made a net inflow of more than Rs 13,000 crore in equities in September, after withdrawing a net amount of over Rs 16,000 crore in the preceding month.
The Indian market was weak ahead of the Budget, but has been quite volatile after that, with earnings growth now being the main cause of uncertainty, says Clive McDonnell, head of EM equity strategy at Standard Chartered Bank, speaking to CNBC-TV18.
In the near term the market is likely to trade in the broad range of 5,750-6,000. Over the longer term, rupee‘s movement, inflation data and steps taken by RBI will be the three key trigger for the market, says Gaurav Doshi, VP - PMS, Morgan Stanley PWM.
Ashok Gautam of Axis Bank, says that the rupee will continue to remain weak in coming days unless we see some inflow coming in.
YD Murthy, executive VP-finance, of NCC, says that the management is very keen to bring down the debt levels in the company by monetizing some of our BOT assets and real estates. The order flow has been sluggish.
Investors pumped in nearly Rs 47,000 crore in various mutual funds during October, making it the highest net inflow in six months, after a net outflow in the previous month.