New Delhi: Investments through participatory notes in the Indian capital market reached Rs 1.5 lakh crore at the end of February, the highest level in almost six years due to the strong performance of the domestic economy.
The latest data includes the value of P-note investments in Indian equity, debt and hybrid securities.
Participatory Notes (P-Notes) are issued by registered foreign portfolio investors (FPIs) to foreign investors who wish to be a part of the Indian stock market without registering themselves directly. However, they must go through a due diligence process.
According to the latest data from market regulator SEBI, the value of P-note investments in Indian markets – equity, debt and hybrid securities – stood at Rs 1,49,517 crore at the end of February, compared to Rs 1,43,011 crore at the end of February.At the end of January.
The amount has reached the highest level since June 2017, when investments through this route stood at Rs 1.65 lakh crore, Securities and Exchange Board of India (SEBI) data showed.
The rise in P-notes is generally in line with the trend of FPI inflows. When there are global risks to the environment, investment through this route increases and vice versa.
Market experts said the inflows in February can be attributed to strong corporate earnings and positive economic growth trends seen during the December quarter.
India's economic growth accelerated to 8.4 per cent in the third quarter of 2023-24, mainly due to the good performance of the manufacturing, mining and quarrying and construction sectors.Of the total Rs 1.5 lakh crore invested through this route till February, Rs 1.27 lakh crore was invested in equity, Rs 21,303 crore in debt and Rs 54 crore in hybrid securities.
Moreover, assets under custody of FPIs increased to Rs 68.55 lakh crore at the end of February from Rs 66.96 lakh crore in the previous month.
Meanwhile, FPIs made a net investment of Rs 1,539 crore in Indian equities and Rs 22,419 crore in the debt market in February.
The latest data includes the value of P-note investments in Indian equity, debt and hybrid securities.
Participatory Notes (P-Notes) are issued by registered foreign portfolio investors (FPIs) to foreign investors who wish to be a part of the Indian stock market without registering themselves directly. However, they must go through a due diligence process.
According to the latest data from market regulator SEBI, the value of P-note investments in Indian markets – equity, debt and hybrid securities – stood at Rs 1,49,517 crore at the end of February, compared to Rs 1,43,011 crore at the end of February.At the end of January.
The amount has reached the highest level since June 2017, when investments through this route stood at Rs 1.65 lakh crore, Securities and Exchange Board of India (SEBI) data showed.
The rise in P-notes is generally in line with the trend of FPI inflows. When there are global risks to the environment, investment through this route increases and vice versa.
Market experts said the inflows in February can be attributed to strong corporate earnings and positive economic growth trends seen during the December quarter.
India's economic growth accelerated to 8.4 per cent in the third quarter of 2023-24, mainly due to the good performance of the manufacturing, mining and quarrying and construction sectors.Of the total Rs 1.5 lakh crore invested through this route till February, Rs 1.27 lakh crore was invested in equity, Rs 21,303 crore in debt and Rs 54 crore in hybrid securities.
Moreover, assets under custody of FPIs increased to Rs 68.55 lakh crore at the end of February from Rs 66.96 lakh crore in the previous month.
Meanwhile, FPIs made a net investment of Rs 1,539 crore in Indian equities and Rs 22,419 crore in the debt market in February.
