With the latest inflows, FPI investments have reached Rs 9,435 crore so far in 2024, data from depositories showed.
So far this year, FPIs have invested Rs 1.07 lakh crore in the debt market.
After a heavy sell-off in the last two months, foreign investors have made a strong return to Indian. Equities With net investment at Rs 24,454 crore in the first week of December amid expectations of stabilization in global conditions and a possible rate cut by the US Federal Reserve.
The recovery follows significant outflows in the previous months, with foreign portfolio investors (FPIs) pulling out a whopping Rs 21,612 crore in November and Rs 94,017 crore in October – the worst monthly outflows on record.
Interestingly, September marked a nine-month high for FPI inflows, with a net investment of Rs 57,724 crore, highlighting the volatility in foreign investment trends. what was
With the latest inflows, FPI investments have reached Rs 9,435 crore so far in 2024, data from depositories showed.
Looking ahead, the flow of foreign investment into Indian equity markets will depend on several key factors. These include the policies implemented under Donald Trump’s presidency, the current inflation and interest rate environment and the evolving geopolitical landscape, said Himanshu Srivastava, associate director of manager research at Morningstar Investment Research India.
Additionally, the third quarter earnings performance of Indian companies and the country’s progress on the economic growth front will play an important role in shaping investor sentiment and influencing foreign inflows.
FPIs have made a net investment of Rs 24,454 crore this month (till December 6), according to data from depositories.
Trivesh D, COO, TradeGenie, a stock trading platform, attributed the latest arrivals to improving global conditions and the possibility of a US Fed rate cut.
Also, the recent correction in the market has encouraged FPIs to build some exposure, Srivastava said.
Additionally, uncertainty over Chinese equities on the back of US President-elect Donald Trump’s proposed tariffs on China and several other countries could force FPIs to look at Indian equities, which have higher long-term growth prospects despite relatively high valuations. It offers clear possibilities. He added.
VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services, said that the change in strategy of FPIs is evident in the movement of stock prices, especially in large banking stocks, where FPIs sell. have been
The segment still has upside potential as it is highly valued and continues to grow at a steady pace, with more domestic institutional and retail investment expected, he added.
Moreover, the IT sector is poised to perform well and attract increasing FII interest.
On the other hand, FPIs disbursed Rs 142 crore in general credit limit and invested Rs 355 crore in Voluntary Debt Retention Route (VRR) during the period under review.
So far this year, FPIs have invested Rs 1.07 lakh crore in the debt market.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed. PTI)