Reuters Market Eye - The total value of participatory notes into Indian equity and debt, including derivatives, rose to 176 trillion rupees in October, its highest since February, according to Securities and Exchange Board of India (SEBI) data.
Check link link.reuters.com/bag74t
The rise in investments via P-notes marks a significant recovery from the fiscal 2012-13 year-low in May when the value fell to 1.29 trillion amid worries the government was looking to tax foreign investors under the General Anti Avoidance Rule (GAAR).
Participatory notes are offshore instruments issued by foreign institutional investors to overseas investors who want to invest in India without having to directly register with Indian capital markets regulator SEBI.
However, the deferral of the implementation of GAAR, valuations in equities and the governent's fiscal and economic reforms have revived investments into P-notes.
Trending On Reuters
With the crucial GDP data scheduled to be announced along with key corporate results, volatility is expected to prevail in the upcoming week. Disappointment on these fronts may push the Nifty down to the 7,200-7,500 range. Once we witness stability and consolidation, investors should increase their exposure, says Ambareesh Baliga. Full article