FPIs return to Dalal Street, turn net buyers of equity in Feb

Mumbai: After four months on a selling spree, the foreign portfolio investors (FPIs) turned net buyers in equity markets. FPIs bought equity and debt assets worth $ 1.48 billion in Feburary. Between October 2016 and January 2017, they sold equities and debt worth $ 4.71 billion.

Experts say, no negative surprises in this years Union Budget and clarity over certain tax related issues could have spurred their buying of India's stocks. On the global front, no rate hike in February too proved beneficial for emerging markets like India.

"What would have also helped flows into Indian market was the fact that for foreign investors, who route their investment through tax havens like the Singapore and Mauritius, these are the last few months to avail tax treaty benefit,"

Last year India has revised its double taxation avoidance agreement with Mauritius, Cyprus and Singapore. Hence from April 1, 2017, investors investing in Indian equities through these countries will now have to pay capital gain tax, though at a lower rate for time being.