P-Note investments at 8-month high in October

MUMBAI: Investments into Indian shares through the participatory note (P-Note) route hit an eight-month high of Rs 1,75,829 crore in October. P-Notes are issued by Sebi-registered foreign institutional investors (FII) to overseas investors, mainly hedge funds and HNIs, who wish to invest in the Indian stock marketswithout registering themselves with the capital marketregulator. 

The total value of P-Notes on equity and debt, excluding derivatives, rose to Rs 95,536 while the overall value rose to Rs 1,75,829, the highest since February. The proportion of P-note investments to overall FII investments also rose to a seven-month high of 14.4%. 

Meanwhile, the Indian stock market fell on Monday following weak global cues. At home, traders booked profits ahead of the RBI's monetary review on Tuesday amid fears that the central bank may maintain status quo and wait until January before cutting interest rates

The BSE Sensex declined 72.83 points, or 0.38%, to end at 19244.42 while NSE Nifty edged lower by 19.10 points, or 0.32%, to close at 5860.50. However, the overall breadth was positive with 1,540 stocks advancing against 1,350 declines. 

"The mood is cautious before RBI's review on Tuesday," said Amar Ambani, head of research, IIFL. "Interest rates are most likely to remain unchanged; inflation numbers dropped marginally from 7.45% in October to 7.24% in November. Yet some are expecting RBI to spring a surprise," he added.
Previous Post Next Post