The robust domestic market in November led to a rise in P-note investment to Rs 1.31 lakh crore

 The robust domestic market in November led to a rise in P-note investment to Rs 1.31 lakh crore

 The robust domestic market in November led to a rise in P-note investment to Rs 1.31 lakh crore

Foreign investors who want to participate in the Indian stock market without registering themselves directly may do so by purchasing Participatory Notes (P-Notes), which are issued by registered foreign portfolio investors (FPIs).

According to experts, FPIs may have returned their attention to the Indian market in search of higher returns as a result of the decline in US Treasury bond rates.

By the end of November, investments made via participatory notes on the Indian capital market had recovered to Rs 1.31 lakh crore, after a decrease the previous month, mostly due to the robust performance of the domestic market. Following a steady Indian economy against an uncertain global macro background, investments made using P-notes have been growing gradually since March. However, in October, there was a dip in these investments.

The value of investments made using participatory notes in Indian debt, equity, and hybrid instruments is included in the most recent statistics. Foreign investors who want to participate in the Indian stock market without registering themselves directly may do so by purchasing Participatory Notes (P-Notes), which are issued by registered foreign portfolio investors (FPIs). They do have to go through a process of due diligence, however.

According to the most recent statistics from market regulator SEBI, the value of P-note investments in Indian markets, including equity, debt, and hybrid instruments, was Rs 1,31,664 crore at the end of November, up from Rs 1,26,320 crore at the same time last year. October's end. of general, the increase of P-notes follows the pattern of FPI inflows. Investment via this channel rises in response to environmental hazards on a worldwide scale, and vice versa.

According to experts, foreign investors may have shied away from initial public offerings (IPOs) as a result of the decline in US Treasury bond rates, which may have forced FPIs to shift their emphasis to the Indian market in search of higher returns. The amount invested via this mechanism reached a six-year high of Rs 1,33,284 crore at the end of September. This was the largest amount since July 2017, when there was Rs 1.35 lakh crore in investment made via this mechanism.

Through this channel, however, investments totaled Rs 1.28 lakh crore in August, Rs 1.23 lakh crore in July, Rs 1.13 lakh crore in June, Rs 1.04 lakh crore toward the end of May, Rs 95,911 crore at the end of April, and Rs 88,600 crore at the end of. the end of March was Rs 88,398 crore, the end of February was Rs 88,398 crore, and the end of January was Rs 91,469 crore. Out of the entire amount invested via this channel up to October, which was Rs 1.31 lakh crore, Rs 1.23 lakh crore went into equities, Rs 8,207 crore went into debt, and Rs 392 crore went into hybrid securities. Out of the entire amount invested via this channel up to October, which was Rs 1.31 lakh crore, Rs 1.23 lakh crore went into equities, Rs 8,207 crore went into debt, and Rs 392 crore went into hybrid securities.

Additionally, the amount of assets held by Foreign Portfolio Investors (FPIs) increased from Rs 56.8 lakh crore to Rs 60.8 lakh crore at the end of November. After selling stocks valued at Rs 24,548 crore in October and Rs 14,767 crore in September, foreign portfolio investors (FFIs) invested Rs 9,000 crore in Indian stocks last month. They invested a net amount of Rs 14,860 crore, the largest in six years, in the debt market last month in addition to stocks.

The decline in US Treasury bond rates and the health of the domestic market are responsible for this spike.