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Cumulative investment by FPIs declined in 2018-19: Economic Survey

By IANS | Updated: July 4, 2019 15:10 IST

India's Economic Survey 2018-19 on Thursday reported a net outflow of Rs 5,499 by Foreign Portfolio Investors (FPIs) in 2018-19.

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Conversely, there was an inflow of Rs 22,466 crore in 2017-18, the survey which was tabled in the Parliament by Finance and Corporate Affairs Minister Nirmala Sitharaman said.

"Total cumulative investment by FPIs decreased to Rs 248,154 crore as on March 31, 2019 as against Rs 253,653 crore as on March 31, 2018," the survey said.

"The assets of the FPIs in India, as reported by the custod, increased to Rs 33,42,680 crore as on March 31, 2019 from Rs 31,48,349 crore as on March 31, 2018."

However, the notional value of offshore derivative instruments (including ODIs on derivatives) decreased to Rs 77,287 crore from Rs 102,726 crore during the same period.

In terms of Mutual Funds, the survey said that during 2018-19, there was a net inflow of Rs 109,701 crore in the industry as compared to Rs 271,797 crore during 2017-18.

"The cumulative net assets under management of all MF increased by 11.4 per cent to Rs 23,79,584 crore in March 2019 from Rs 21,36,036 crore in March 2018," the survey said.

Further, the survey showed that resource mobilisation through issuance of corporate bonds private placement stood at Rs 579,425 crore in 2018-19 compared to Rs 599,147 crore in 2017-18.

"During 2018-19, Indian corporates preferred private placement route to gear

up the capital requirement," the survey said. "There were 416 issues which raised Rs 217,632 crore in 2018-19 compared to 460 issues which raised Rs 126,711 crore during 2017-18."

Besides, the year 2018-19 witnessed a significant decrease in resource mobilisation through public issue and rights issue of equity compared to the previous year.

"During 2018-19, 123 companies mobilised Rs 16,087 crore through public equity issuance compared to 202 companies amounting Rs 83,696 crore in the previous year, indicating a decrease of 81 per cent over the period," the survey said.

"Further, during 2018-19, there were 21 rights issues which raised Rs 2,149 crore compared to 21 rights issues which raised Rs 21,400 crore in 2017-18."

The country's two key stock indices S&P BSE Sensex and NSE Nifty50 witnessed a rise 17.3 per cent and a gain of 14.9 per cent on financial year closing basis in 2018-19.

( With inputs from IANS )

Tags: indiaNirmala Sitharamannse
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