$30 billion: FPI investments in the Indian market in FY21.
- Foreign Portfolio Investors have so far invested $31.7 billion in 2020-21. They had last pumped big money into the country in 2012-13, when they had invested $25.8 billion.
- After the Budget, FPIs pumped in over $1 billion in Indian equities. One reason for their optimism is the improving prospects of the economy. The growth-oriented Budget announced by the Finance Minister has also reinforced their positive outlook.
- The overarching reason, of course, is that there is a lot of liquidity floating around in the global markets, which is finding its way into emerging economies, including India.
- FPI inflows are expected to continue unless the global central banks, especially the US Federal Reserve, change their stance and start sucking liquidity out of the markets, or begin to raise interest rates in the wake of inflation.
- However, given the weak state of the economy, a reversal of stance by the US Fed may be some time away.
- Such massive inflows have pushed valuations within the Indian market to expensive levels. If the strong earnings growth prospects that analysts are projecting don't materialise, the markets could turn risky.
A few links for further reading
Insecure and uncertain in insurance business as Covid-18 damage claims mount
Insurance companies around the world were sailing smoothly, helped by growth in emerging markets and strong capitalisation. Things changed in late February when markets realised that Covid-19’s impact on insurers could be significant. Insurers are yet to know the full impact of the crisis as governments and regulators nudge them to give moratoriums to policyholders and quickly settle claims too. India’s insurance regulator has set strict deadlines for medical insurers to settle Covid-19 claims. General insurers face damage claims from businesses devastated by the national lockdown to contain the disease. Is insurance secured to survive, Joydeep Ghosh explains
There was a time when pay cuts we see today were a complete no-no; govt and public sector jobs were considered safe, as pay and pensions were both assured. Not any longer, it seems, writes T N Ninan
Quick approval, grace period
The COVID-19 pandemic has brought home the significance of health and life insurance like nothing else earlier. Even those who were blasé about these covers in the past are now looking to buy a new policy or want to enhance the sum insured on their existing ones. Meanwhile, the Insurance Regulatory and Development Authority of India (IRDAI) has been issuing a slew of guidelines to health/general and life insurance companies aimed at easing matters for customers.