New Delhi: Investments through participatory notes in the Indian capital market rose to Rs 1.49 lakh crore at the end of March from last year's level due to strong domestic macroeconomic outlook.
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 1,49,120 crore at the end of March 2024, up from Rs 88,600 crore. Crore at the end of March 2023.
On a month-on-month basis, the investment number declined slightly from Rs 1,49,517 crore at the end of February.
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 inflow in March could be attributed to positive economic growth. India's economic growth accelerated to 8.4 per cent in the third quarter of 2023-24 mainly due to good performance of manufacturing, mining and quarrying and construction sectors.
Of the total Rs 1.49 lakh crore invested through this route by March 2024, Rs 1.28 lakh crore was invested in equity, Rs 20,806 crore in debt and Rs 346 crore in hybrid securities.
Moreover, assets under custody of FPIs rose to Rs 69.54 lakh crore at the end of March 2024 from Rs 48.71 lakh crore a year ago.
Meanwhile, FPIs made a net investment of Rs 35,000 crore in Indian equities and Rs 13,602 crore in the debt market in March this year.
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 1,49,120 crore at the end of March 2024, up from Rs 88,600 crore. Crore at the end of March 2023.
On a month-on-month basis, the investment number declined slightly from Rs 1,49,517 crore at the end of February.
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 inflow in March could be attributed to positive economic growth. India's economic growth accelerated to 8.4 per cent in the third quarter of 2023-24 mainly due to good performance of manufacturing, mining and quarrying and construction sectors.
Of the total Rs 1.49 lakh crore invested through this route by March 2024, Rs 1.28 lakh crore was invested in equity, Rs 20,806 crore in debt and Rs 346 crore in hybrid securities.
Moreover, assets under custody of FPIs rose to Rs 69.54 lakh crore at the end of March 2024 from Rs 48.71 lakh crore a year ago.
Meanwhile, FPIs made a net investment of Rs 35,000 crore in Indian equities and Rs 13,602 crore in the debt market in March this year.