Question : RBI has recently(March 2021) released a report regarding Foreign portfolio investors inflows. Which one of the following statement is correct regarding this report ?
(a) FPI inflows upto March 10 stood at 36 billion dollar
(b) It is highest since FY15
(c) Net foreign direct investment inflows jumped to USD 84 billion, till end January
(d) None of the above
Ans.(a)
Related facts
- Foreign portfolio investors’ investment in Indian stocks has reached a record high of 36 billion dollar in the current financial year till March 10, the highest since FY13.
- A latest RBI report revealed this.
- Net foreign direct investment inflows jumped to USD 44 billion, till end January, up from USD 36.3 billion a year ago, driven by the massive inflows in November and December, with the last month of the year getting a record USD 6.3 billion.
- But the inflows moderated in January due to lower inflows into equities.
- The report further notes that the quality of FPI inflows improved during the period as category-I foreign investors, comprising central banks, sovereign wealth funds, pension funds, regulated entities and multilateral organisations, increased their stake to a high 95 per cent of total equity assets at end-February compared with 87 per cent at end-December 2019.
- According to depositories data, FPIs were net buyers of equities so far in March at Rs 8,642 crore.
- FPIs poured in Rs 14,202 crore into equities but pulled out Rs 5,560 crore from debt segment between March 1 and 19, leaving net investment to Rs 8,642 crore.
- Prior to this, overseas investors had invested Rs 23,663 crore in February and Rs 14,649 crore in January, on a net basis.
By — Pankaj pandey.