FPIs' net inflow at Rs 16,500 cr in April so far

Foreign investors have pumped in a whopping Rs 16,500 crore in the Indian capital markets this month so far on the back of improved investor sentiment and growth in manufacturing sector.

This comes following a record net inflow of Rs 56,944 crore (USD 8.7 billion) last month, mainly on expectations that BJP's victory in the recently held assembly polls would lead to faster reforms.

In February, Foreign Portfolio Investors (FPIs) had made a net investment of Rs 15,862 crore in equity and debt markets. Prior to that, FPIs had pulled out more than Rs 80,000 crore between October 2016 to January 2017.

A major boost to the investor sentiment came last week from the latest Nikkei India Manufacturing PMI data, which showed the factory output growth rising to a five-month high in March, indicating a further improvement in the health of India's manufacturing sector, experts said.

According to depository data, FPIs infused a net sum of Rs 2,997 crore in equities during April 3-13 and another Rs 13,531 crore in the debt segment, translating into a combined inflow of Rs 16,529 crore (USD 2.54 billion).

With this, total inflow has reached to Rs 85,156 crore (USD 13 billion) so far this year in the capital markets (equity and debt).

Geojit Financial Services Chief Market Strategist Anand James said: "The prospects of a gradual US rate hike looks to have improved the risk appetite. This should also mean, save a negative surprise from monsoon forecast, fourth quarter numbers should prompt investors to be forward looking."