FDI equity inflows touch US$30,004 million up to September 2020 in FY2020-21

03 December 2020: COVID-19 has drastically affected the investment climate in all economies of the world, causing a sharp decline in the demand and supply equilibrium everywhere. India has been no exception to this unprecedented economic shock.

Yet, Indian growth story continues as is demonstrated by the trends in FPI, FDI and Corporate Bond Market flows, that is, FPI inflows stood at Rs.62,782 crore for November 2020. And FDI equity inflows touch US$30,004 million up to September 2020 in FY2020-21-which is 15% more than the corresponding period of 2019-20. In H1 FY21, the total corporate bond issuances amount to Rs.4.43 lakh crore, 25% higher than Rs.3.54 lakh crore in the same period last year

The last two months have witnessed a significant resurgence in FPI inflows driven primarily by equity inflows resulting in the highest ever FPI inflows for a month for India. As of 28th November 2020, FPI inflows stood at Rs.62,782 crore. Of this, equity inflows amounted to Rs 60,358 crore while FPI net investment in debt and hybrid was to the tune of Rs2,424 crore.

There has been a secular trend of positive net flows in the equity segment in November without any reversal till date. The highest inflow in total FPI investment was witnessed on 12th November, marking a single day peak of Rs 11,056 crore.