Following the benchmark Sensex’s rally of over 1,400 points after the Budget day crash of 988 points, foreign portfolio investors (FPIs) pulled out Rs 1,172 crore from equities during the February 3-7 period.
However, FPIs remained net buyers in Indian capital markets for a sixth straight month in February, putting in a net amount of Rs 5,177 crore mainly in the debt segment in the month so far, according to data from the National Securities Depository Limited (NSDL). FPIs put Rs 6,350 crore in the debt segment between February 3-7, NSDL data showed.
The Sensex rally after the Budget was led by domestic institutions which made heavy purchases and the Sensex recovered by 917 points on February 3.
While announcing the Union Budget on February 1, Finance Minister Nirmala Sitharaman said certain government securities will be open for foreign investors, adding that the Centre plans to increase investment limit for FPIs in corporate bonds from 9 per cent to 15 per cent. Besides, the government also proposed to remove dividend distribution tax (DDT) on companies, and henceforth the tax burden will be shifted to recipients at the applicable rate.
Markets regulator Sebi recently came out with a common application form for registration of foreign portfolio investors in order to enhance operational flexibility and ease of access to Indian capital market. Depository participants have been asked to continue to accept in-transit FPI registration applications, for a period of 60 days, Sebi said in a circular.
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