Foreign portfolio investors (FPIs) have bought equities worth $2.74 billion in the Indian markets in 2016 so far – 55.58% lower than what they had pumped into Indian equity markets during the same period in 2015, according to data obtained from Bloomberg. In the corresponding period in 2015, they had bought Indian equities worth $6.18 billion.
The main reason for inflows being lower this year is an outflow of $1.70 billion in the month of January, which was the biggest outflow in any single month so far this calendar year. On the other hand, the month that saw the highest inflow this year was March in which foreign investors bought Indian equities worth $ 4.08 billion.
This makes India the third biggest destination for FPIs after Taiwan and South Korea which have seen inflows of $ 5.92 billion and $ 2.99 billion respectively. At the other end of the spectrum is Philippines which has received just $ 573.2 million in FPI inflows this year. Indonesia ranks second in this list with the inflows of $ 852.2 million.