FPI Indian Equities

Foreign portfolio investors' participation in the Indian equity and derivative markets is increasing on a daily basis while new Indian investors from tier-3 and tier-4 cities are set to create a significant influence in the domestic markets, says an industry expert. "FPIs are banking on steady returns on their investments which is backed by the country's projected steady economic growth in the years ahead, we are expecting participation from new Indian traders to contribute significantly to the multi-fold increase in trading volume over the next five years, said Ajay Garg, Director and CEO of Delhi-headquartered SMC Global Securities Ltd. There is a lot of foreign interest in the Indian market, especially FPIs participating in high frequency and medium frequency trading, he said, adding that SMC was currently serving around 60 investment-loaded FPIs and more have lined up to become members of the group. Garg said that SMC is working on capturing more FPI business, given that the ...

The exodus of foreign investments from Indian equity markets continued unabated, with FPIs pulling out nearly Rs 20,000 crore in the last five trading sessions on higher valuations of domestic stocks and shifting their allocation to China. As a result, foreign portfolio investors (FPIs) have turned net sellers in the equity market, with total outflows reaching Rs 13,401 crore for 2024 so far. Going ahead, the FPI selling trend is likely to continue in the near term till data indicate the possibility of a trend reversal. If the Q3 results and leading indicators reflect a recovery in earnings, the scenario can change with FPIs reducing selling and even turning buyers. Investors will have to wait and watch for the data, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. With the newly elected US president not assuming office until January 2025, the Indian market's near-term direction will be more influenced by domestic factors like the Maharashtra assembly ..

Foreign investors pulled out a massive Rs 94,000 crore (around USD 11.2 billion) from the Indian stock market in October, making it the worst-ever month in terms of outflows, triggered by the elevated valuation of domestic equities and attractive valuations of Chinese stocks. Before this, foreign portfolio investors (FPIs) withdrew Rs 61,973 crore from equities in March 2020. The latest outflow came after a nine-month high investment of Rs 57,724 crore in September 2024. Since June, FPIs have consistently bought equities after withdrawing Rs 34,252 crore in April-May. Overall, FPIs have been net buyers in 2024, except for January, April and May, data with the depositories showed. Looking ahead, the trajectory of global events like geopolitical developments, interest rate movements, progress in the Chinese economy and the outcome of the US Presidential election will play a crucial role in shaping future foreign investment in Indian equities, Himanshu Srivastava, Associate Director,

Foreign investors turned net sellers in October, withdrawing shares worth Rs 58,711 crore in the month so far owing to escalating conflict between Israel and Iran, a sharp rise in crude oil prices, and the strong performance of the Chinese market. The outflow came following a nine-month high investment of Rs 57,724 crore in September. Since June, Foreign Portfolio Investors (FPIs) have consistently bought equities, after withdrawing Rs 34,252 crore in April-May. Overall, FPIs have been net buyers in 2024, except for January, April, and May, data with the depositories showed. Looking ahead, global factors such as geopolitical developments and the future direction of interest rates will play a crucial role in determining the flow of foreign investments into the Indian equity markets, Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said. According to the data, FPIs made a net withdrawal of Rs 58,711 crore from equities between October

After infusing money during the last two months, foreign investors have turned net sellers as they pulled out over Rs 13,400 crore from Indian equities in August so far due to unwinding of the yen carry trade and recession fears in the US. So far this year, FPIs have made a net investment of Rs 22,134 crore in equities, data with the depositories showed. Going forward, if the market continues to rise, FPIs are likely to press more sales since Indian stock valuations continue to remain elevated, particularly in relation to valuations in other markets, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. According to the data, Foreign Portfolio Investors (FPIs) withdrew a net amount of Rs 13,431 crore from equities so far this month (August 1-9). This came following an inflow of Rs 32,365 crore in July on expectation of sustained economic growth, continued reforms and better-than-expected earnings season, and Rs 26,565 crore in June driven by political ...

Foreign investors injected over Rs 33,600 crore into Indian equities so far this month on the expectation of continued policy reforms, sustained economic growth and a better-than-expected earnings season. However, they pulled out over Rs 7,200 crore from equities in the last three trading sessions (July 24-26) after the government hiked taxes on Futures and Options trades (F&O) and capital gains from equity investments in the Budget. Market experts believe that Indian equity is well-positioned for the year to attract foreign investments. However, there may be some monthly volatility due to short-term news. "Indian equity market and bond market are favourably placed for the year. This should attract foreign flows into the country. There could be some volatility in the flows on a month-on-month basis due to short-term news flows," Nimesh Chandan, CIO of Bajaj Finserv AMC, said. According to the data with the depositories, foreign portfolio investors (FPIs) have made a net inflow of .

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Foreign investors have pulled out a massive Rs 22,000 crore from Indian equities so far this month, due to uncertainty surrounding the outcome of the Lok Sabha elections and outperformance of Chinese markets. This came following a net outflow of over Rs 8,700 crore in the entire April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Going forward, as clarity emerges on the election front, Foreign Portfolio Investors (FPIs) are likely to buy in India, since they cannot afford to miss the post-election results rally. Actually, the rally may begin even before the election results, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. According to data with depositories, Foreign Portfolio Investors (FPIs) witnessed a net outflow of Rs 22,047 crore from equities this month (till May 24). "This heavy selling was

Apart from the bond yields and geopolitical crisis, another trigger for FPI selling was the tweak in India's tax treaty with Mauritius, which would now impose higher scrutiny on investments

FPIs have turned cautious as they pulled out Rs 325 crore from Indian equities in the first week of this month owing to relatively high valuations and the upcoming general elections. The net outflow came after a staggering investment of Rs 35,000 crore in March and Rs 1,539 crore in February, data with the depositories showed. Going ahead, Geojit Financial Services Chief Investment Strategist VK Vijayakumar said the US 10-year yield has spiked to 4.4 per cent, which will impact FPI (foreign portfolio investor) investment flows into India in the near term. However, FPI selling will be limited despite the high US bond yields since the Indian stock market is bullish and has been setting new records consistently, he added. smallcase Manager and Senior Research Analyst at Capitalmind Krishna Appala believes that FPIs might return post-elections or upon early signs of a US Fed rate reduction. According to the data with the depositories, FPIs withdrew Rs 325 crore from Indian equities th

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FPIs bought diversified financials, electric utilities and IT services stocks and sold capital goods and transportation stock.

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The value of foreign portfolio investors' (FPI) holdings in the domestic equities reached USD 584 billion at the end of December 2022, which was 11 per cent lower from preceding year, according to a Morningstar report. This was largely on low return given by the Indian equities and exodus of foreign money from the domestic stock market. Going by the report, the value of FPIs investments in Indian equities dropped to USD 584 billion as of December 2022 as compared to USD 654 billion at the end of December 2021. On a quarter-on-quarter basis, the value of FPIs investment grew 3 per cent from USD 566 billion in the three months ended September 2022. This was also the second consecutive quarter, when the value of their investment in the domestic stock market had increased. Consequently, FPIs' contribution to Indian equity market capitalisation also went up during the quarter to 17.12 per cent from 16.97 per cent in the September 2022 quarter. After posting a robust growth in 2020 and

The selling coincided with a slide in equity benchmarks, with Nifty 50 falling 2.45% in the first month of 2023

A likely tapering of rate hikes by US Fed is also seen taking the global sheen off the dollar and working in favour of emerging markets