Foreign portfolio flows at record high Foreign Portfolio Investors (FPIs) have broken the record for the highest-ever purchases of Indian stocks and debt in a calendar year with a full month still to go. They have bought (net basis) $39.66 billion of equity and fixed-income assets so far, beating the $39.45 billion in 2010. The surge this year can be mainly attributed to the resilience of the rupee. Even as emerging economy currencies such as the South Korean won, Brazilian real and South African rand depreciated by 4.5-6.5% against the dollar, the rupee weakened by a mere 0.1% this year. The relative strength in both bond and equity markets in India compared with other emerging markets is the other reason.
Posted on: Wed, 26 Nov 2014 08:43:23 +0000