FPIs, MFs pump in over Rs 97,000 crore in stock markets in six months

Foreign portfolio investors (FPIs) and domestic mutual funds’ investments in the equity market at Rs 97,705 crore has surged nearly three-fold during the first half (January –June) of current calendar year 2017 (CY17). While the FPIs have invested Rs 55,908 core during this period, mutual funds have invested Rs 41,797 crore in equities in first half of CY17. Their collective investment is 3.4 times higher as compared to the same period last year when they pumped in a net Rs 28,811 crore, National Securities Depository Limited (NSDL) data show. The abundant liquidity has taken the benchmark indices – the S&P BSE Sensex and the Nifty50 –nearly 18 per cent higher to become the best performing market globally on year-to-date (YTD) basis. The rally in mid-and small-caps has been sharper, with S&P BSE Mid-cap and S&P BSE Small-cap indices surging over 30 per cent  during this period. Commodity Trading Tips

Of the Rs 41,797 crore invested by mutual funds thus far in CY17, bulk of their investment – Rs 30,328 crore, or 73 per cent, has been in the April – June 2017 (Q1FY18) period. They have been net buyers in the equity segment for the 11th straight month, starting August 2016. “Investors have matured over time and realised that professionally managed and well-regulated mutual funds are a safe investment avenue. That apart, the other forms of investment – real estate, gold etc – have lost charm. As a result, investors turned towards mutual funds, who then invested this corpus in equity markets,” explains Nilesh Shah, managing director, Kotak Mahindra Asset Management. Nifty Trading Tips