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Foreign portfolio investors (FPI) continued to flock to Indian equities in March with <keyword id="6064456" type="UNKNOWN" weightage="20" keywordseo="Net-Inflow">net inflow</keyword> into the segment at ₹10,482 crore. However, amid surging <keyword id="35232" type="PERSON" weightage="20" keywordseo="bond-yields">bond yields</keyword> globally and resurgence of Covid cases both in Indian and Europe, the investments have declined. The net FPI <keyword id="45422" type="PERSON" weightage="20" keywordseo="inflow">inflow</keyword> last month was less than half of that in February. Net FPI inflow in equities stood at ₹25,787 crore in February. The bull run in the Indian equities was brought to a halt last month by a surge in the US bond yields. High bond yields are likely to impact the market in the near future too, analysts said. Rusmik <keyword id="361071" type="COMPANY" weightage="20" keywordseo="Oza">Oza</keyword>, Executive Vice President, Head of Fundamental Research at Kotak Securities, said: "This calendar year to date, the US 10-year bond yield has appreciated by 81 per cent (from 0.91 per cent to 1.72 per cent). In the same period, <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>'s 10-year bond yield has gone up by only 5.1 per cent (from 5.86 per cent to 6.17 per cent)." He noted that expectation of inflation acceleration and strong US economic growth has led to rise in bond yields. Globally rising bond yields are putting pressure on richly valued sectors and companies, Oza said. However, the inflow of FPIs into equities stood at a record ₹2.74 lakh crore in the financial year ended March 2021. The net inflow during January-March 2021 stood at ₹55,742 crore. "The massive fiscal stimulus by governments and monetary stimulus by central banks has led to inflows into select emerging markets. India has been the biggest recipient of FPI flows in FY21 amongst emerging markets because of the stronger recovery in the economy and surprise in earnings growth," said Oza. SEE ALSO: <a href="https://www.businessinsider.in/science/space/news/nasa-estimates-pandemic-could-cost-it-around-3-billion-quick-look-at-projects-to-take-the-biggest-hit/slidelist/81869940.cms">NASA estimates the pandemic ballooned costs by $3 billion — here are the projects to take the biggest hit</a> <a href="https://www.businessinsider.in/business/startups/news/a-5-5-billion-british-fintech-start-up-may-have-200-jobs-to-offer-in-india/articleshow/81867620.cms">A $5.5 billion British fintech start up may have 200 jobs to offer in India</a> <a href="https://www.businessinsider.in/business/startups/news/for-revolut-india-is-just-the-first-in-a-series-of-countries-it-plans-to-enter-in-the-next-18-months/articleshow/81883114.cms">For Revolut, India is just the first in a series of countries it plans to enter in the next 18 months</a>

Net FPI inflow into equities at ₹10,482 crore in March

Mumbai, The Covid-19 virus not only triggered a <keyword id="8897085" type="UNKNOWN" weightage="20" keywordseo="worldwide-pandemic">worldwide pandemic</keyword>, but also opened the floodgates for investments in the country's equity market. All in all, not only did the overall capitalisation of India's <keyword id="6382118" type="UNKNOWN" weightage="20" keywordseo="domestic-market">domestic market</keyword> increased, the country's key indices emerged among the best performing emerging markets (EMs). Initially, the lockdown induced crash led to <keyword id="763912" type="PERSON" weightage="20" keywordseo="attractive-valuations">attractive valuations</keyword> along with a global flood of liquidity and near zero interest rates in foreign markets. As a result, return on investment from <keyword id="10500884" type="UNKNOWN" weightage="20" keywordseo="several-asset-classes">several asset classes</keyword> except equities vaporised. Investors jumped from one assets class to the other, till the time even the US dollar became unviable due to the massive stimulus package. Accordingly, the funnelling of such funds into the emerging markets led to a net investment of over $22 billion into India's market till now in CY2020. Besides foreign funds, the domestic lockdown, the biggest in the world, flooded the <keyword id="35199" type="PERSON" weightage="20" keywordseo="stock-markets">stock markets</keyword> with over 60 lakh new retail investors. Additionally, a considerable number enrolled through various schemes via the MF segment. Market watchers contend that these newbie investors saw the value in stocks beyond the pandemic induced slowdown and became the real beneficiaries of the up move. Till now in 2020, Indian markets witnessed FPI inflows of $22,281 million, which is 55% higher than the flows in the entire 2019 in USD terms. However, the domestic MF houses pulled out over ₹33,000 crore till November 2020. "Valuations are at 2SD (standard deviation) over the 10 year average, hence there is some caution on this front. However as long as interest rates continue to be zero or near zero across the globe, P/E ratios could keep expanding to levels not seen in the past," said Deepak Jasani, Head of Retail Research at HDFC Securities. In terms of purchase, FPIs initially preferred large cap stocks till October. Later on, they enlarged their purchases to include the mid and small cap segments. Sectorally, IT, pharma, banks, FMCG, metals, realty and oil &amp; gas stocks were bought the most by FPIs in this year. Apart from very high FPI inflows in 2020, large number of new investor registrations due to the Covid-19 pandemic has also contributed to the uprun in the market. "The huge stimulus rolled out by central banks across the developed world to tackle the pandemic in 2020 has certainly led to abundant liquidity. While it was expected that EMs would see strong FPI flows in 2020, the fact remains that only few emerging economies have seen such flows and India is one such country, especially given the slew of reforms undertaken in 2020," said LKP Securities' Head of Research, S. Ranganathan. "Having said that, it cannot be denied that lakhs of young first time equity investors have opened DEMAT accounts during 2020 and have invested into direct equities which is also a reflection of financialisation of savings," Ranganathan added. According to Gaurav Garg, Head of Research at <keyword id="1002876" type="COMPANY" weightage="20" keywordseo="CapitalVia-Global-Research">CapitalVia Global Research</keyword>: "Moving forward, FPIs may continue to concentrate in the Indian market for another 1-2 quarters. "The factors like low Covid-19 case count, expected vaccine in the first half of 2021, fear of valuations may go even higher and economic return to the growth trajectory are expected to potentially fuel more development in the emerging markets such as India." SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/india-will-have-to-pay-cairn-1-2-billion-ending-one-of-the-biggest-tax-disputes-of-the-decade/articleshow/79934284.cms">India will have to pay Cairn $1.2 billion ending one of the biggest tax disputes of the decade</a> <a href="https://www.businessinsider.in/stock-market/news/mrs-bectors-food-ipo-investors-saw-their-money-double-on-listing-day/articleshow/79934860.cms">Mrs Bector’s Food IPO investors saw their money double on listing day</a> <a href="https://www.businessinsider.in/thelife/personalities/news/from-taking-on-yahoo-to-being-tamed-by-chinas-communist-party-its-been-a-roller-coaster-decade-for-jack-ma/slidelist/79935613.cms">From taking on Yahoo to being tamed by China’s Communist Party— it’s been a roller coaster decade for Jack Ma</a>

Stocks attract over $22 billion as India emerges among best performing emerging markets

New Delhi, Dec 22 () Following are the top business stories to be released on Sunday:
 
BIZ-WEF-INDIA
Union ministers, CMs to join over 100 CEOs at WEF's 50th Annual Meeting in Davos
New Delhi: Union ministers Piyush Goyal and Mansukh Mandaviya as well as three chief ministers -- Amarinder Singh, Kamal Nath and B S Yeddyurappa -- will join over 100 Indian CEOs in the Swiss ski resort town of Davos next month for the WEF's 50th annual meeting, which will be attended by thousands of rich and powerful from across the globe.
 
BIZ-YEAR-FPI
FPIs open fund floodgates for Indian markets; Net inflow crosses Rs 1 trn in 2019
New Delhi: Ignoring negative sentiments around falling GDP growth rate and some policy roadblocks, foreign portfolio investors seem to have flocked to the Indian capital market in a big way in 2019 with a net inflow of over Rs 1.3 lakh crore, including Rs 97,250 crore in equities -- the highest in last six years.
 
BIZ-YEAR-JOBS
Headcount expansion loses currency, companies to promote up-skilling in 2020: Experts
New Delhi: After taking a big hit from falling rate of economic growth in 2019, the job market may remain muted in the new year as well in terms of workforce expansion and salary hikes as more and more companies are expected to prefer up-skilling of existing staff rather than hiring new ones, experts feel.
 
BIZ-PROJECTS-COST OVERRUN
377 infra projects show cost overruns of Rs 3.94 lakh crore
New Delhi: As many as 377 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns of more than Rs 3.94 lakh crore owing to delays and other reasons, according to a report. MKJ MKJ

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New Delhi, Nov 27 () Investors pumped nearly Rs 24,000 crore in equity mutual funds during July-September quarter this year, a surge of 35 per cent from the preceding quarter, mainly due to the rollback of FPI surcharge, corporate tax cut and anticipation of more reforms, according to a report.
 The inflow pushed the asset base of equity mutual funds (MFs) to Rs 7.24 lakh crore by September-end from Rs 7.23 lakh crore at the end of June.
 According to a Morningstar report, equity category witnessed flows to the tune of Rs 23,874 crore in September quarter as compared to an inflow of Rs 17,680 crore in June quarter.
 Over 25 per cent (more than Rs 6,000 crore) of the net flows have been directed toward the large-cap category as investors preferred to put money in the top 100 stocks by market capitalisation because the segment has been the most resilient over the past year.
 "The incumbent government's efforts have also led to most of the new money being allocated to the large-cap category. Some of the government's policy changes, including the rollback of FPI surcharge, corporate tax cut, PSU recapitalisation, and anticipation of reforms have also aided in ensuring a steady stream into large-cap funds," the report noted.
 Overall, the equity category witnessed net flows averaging at over Rs 25,000 crore between between April 2018 and December 2018. Post that, there was a sharp drop in the money infusion in the quarter ended March 2019 to Rs 17,876 crore. This trend seemed to have continued into the following quarter with fund flows of around Rs 17,680 crore in June quarter 2019, it said.
 However, the equity category witnessed a surge in inflow in September quarter with the segment attracting flows to the tune of Rs 23,874 crore.
 Significant corrections in some of the mid-cap and small-cap stocks and broader index, sell-off by foreign portfolio investors (FPIs) owing to market uncertainty, and liquidity concerns in small- and mid-cap companies seem to have impacted overall flows in equity mutual funds, the report noted.
 "Having said that, mutual funds continue to hold fort with the help of a strong systematic investment plan (SIP) book," it added.
 SIP is an investment vehicle that allows investors to invest small amounts periodically instead of lump sum payment. The frequency of investment is usually weekly, monthly or quarterly. It is similar to a recurring deposit where investors deposit a small or fixed amount every month.
 Overall, mutual fund flows have been growing consecutively for the past three quarters. Net inflow was Rs 46,578 crore for the September quarter, an increase of 10 per cent compared to Rs 42,357 crore in June quarter.
 On the domestic front, markets have remained extremely polarised over the past quarter. 
 Despite an overall slowdown, the BSE Sensex experienced a massive run-up and crossed the 40,000 threshold on June 3, 2019, owing to a fall in crude oil prices and expectations of government reforms, such as an interest rate cut.
 Besides, a euphoria around reduction of corporate taxes was another major factor that led to an upswing in the markets, the report said. SP 
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Net FPI inflow into equities at ₹10,482 crore in March

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Stocks attract over $22 billion as India emerges among best performing emerging markets

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Investors pump Rs 24,000 cr in equity mutual funds in Jul-Sep: Report

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