Press Information Bureau
Government of India
Ministry of Finance

29-November-2011 18:1 IST

Volatility is inherent in any market. It is an outcome of perceptions of the investors – domestic and overseas, retail and institutional – about the economy, the sector and the company.  The domestic fundamentals of economy are strong and intact.

Capital flows on account of Foreign Direct Investment (FDI) and Portfolio Investment Scheme (PIS) over the period July-2011 to September-2011and the total value of foreign exchange reserves at the end of past three months are given in the following tables:

Capital flows

(Amount in USD Million)

Foreign Exchange Reserves

(Amount in USD Million)

*as on October 28, 2011

* * *

DSM/Hb

Capital flow volatility: government release reports FDI and portfolio investment trends and reserve positions to inform policy. The press release reports that market volatility in external capital flows reflects investor perceptions while domestic fundamentals remain strong, and it supplies monthly data on Foreign Direct Investment and portfolio investment showing variability in portfolio flows and corresponding foreign exchange reserve levels; the document records these patterns without specifying regulatory measures.