P-notes investment declines to Rs 88,398 cr in Feb

Investment via participatory notes (P-notes) in Indian markets fell to Rs 88,398 crore month-on-month in February due to the markets’ higher valuation, representing the third monthly decline in the investment level. The trend of investing through the route had been continuously increasing since July 2022 due to a slump in commodities prices and Indian equity markets’ relative outperformance. Market experts have noted that Indian markets are expensive compared to other emerging markets, making it a good opportunity for Foreign Portfolio Investors (FPIs) to book their profits and search for cheaper valuations elsewhere.