Investment in the Indian capital markets through participatory notes declined to Rs 75,725 crore at the end of July, the lowest level in nearly two years, mainly in the wake of aggressive rate hikes by the US Fed. This also marks the third consecutive monthly decline in investment numbers.
Participatory notes (P-notes) are issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. According to Securities and Exchange Board of India (Sebi) data, the value of P-note investments in Indian markets— equity, debt, and hybrid securities— stood at Rs 75,725 crore at July-end.