FPIs have been adopting a cautious stance toward Indian equity markets for the past few weeks
Foreign investors have infused a net Rs 11,557 crore in Indian equities in December so far despite a market correction and increasing concerns over re-emergence of COVID in China and some other parts of the world. Going ahead, macro data from the US and COVID news will drive FPI flows and the markets in the near term, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. According to data with the depositories, Foreign Portfolio Investors (FPIs) invested a net sum of Rs 11,557 crore in equities during December 1-23. This comes following a net investment of over Rs 36,200 crore in November primarily due to weakening of the US dollar index and positivity about overall macroeconomic trends. Prior to this, foreign investors pulled out Rs 8 crore in October and Rs 7,624 crore in September, data with the depositories showed. "Despite correction in the markets, increasing concerns over re-emergence of COVID in some parts of the world and recession worries in the
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Prior to this, foreign investors pulled out Rs 8 crore in October and Rs 7,624 crore in September, data with the depositories showed
The biggest decline in two months; FPIs sell shares worth Rs 711 cr
After investing over Rs 36,200 crore last month, foreign investors continued their positive momentum and infused Rs 4,500 crore in the Indian equity markets so far in December, mainly due to the decline in the dollar index. However, foreign portfolio investors (FPIs) turned sellers in the last four trading sessions and pulled out Rs 3,300 crore as they are adopting a cautious stance ahead of the US Federal Reserve's decision on the interest rate. Going forward, in the near term, FPIs are likely to make only modest purchases in performing sectors and may continue to sell and book profits in sectors where they are sitting on big profits, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. More money is likely to move into cheaper markets like China and South Korea where the valuations are compelling now, he noted. "Even though India will continue to attract foreign capital the high valuations in India will be a deterrent," Vijayakumar added. According to
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FPIs bought shares worth Rs 9,010 crore on Wednesday, according to provisional data from exchanges
According to experts, after remaining net sellers in August and September, Foreign Portfolio Investors (FPIs) are unlikely to be major sellers going forward
However, the timeline issue for many FPIs remains, as the relaxation still compels them to book forex during non-market hours
Conversely, Reliance Industries and Tata Consultancy Services saw the maximum FPI outflows at Rs 44,622 crore and Rs 17,838 crore, respectively
After declining for three consecutive quarters, the value of FPI investment in Indian equities rose 8 per cent quarter-on-quarter to USD 566 billion in the July-September period, according to a Morningstar report on Wednesday. A fast-changing global macroeconomic landscape, sentiments and opportunities that the Indian equity markets have to offer impacted the direction of flows by Foreign Portfolio Investors (FPIs). Through the quarter, the value of the FPI holdings domestic equities surged by 8 per cent to USD 566 billion from USD 523 billion recorded in the previous quarter. Further, the value of such investment was USD 612 billion in the March quarter and 654 billion in the quarter ended December 2021, as per the report. During the quarter ended September 2021, the value of FPI investments in Indian equities was USD 667 billion. Consequently, foreign investors' contribution to Indian equity market capitalisation also grew marginally during the quarter under review to 16.97 per
Indian currency at 1-month high on FPI flows, weak dollar
After withdrawing funds in the last two months, foreign investors came back strongly in the first week of November and infused Rs 15,280 crore in Indian equities
Foreign investors may switch to custodians backed by American banks for India exposure
US and European markets gained in October after a sharp sell-off in September
So far this year, the total outflow by FPIs in equities has reached Rs 1.70 trillion
Sustained selling by FPIs increases investment legroom to 22% at the end of September 2022 quarter
The flows from FPIs have been inconsistent over the last few months as they kept on changing their stance frequently tracking the fast-changing investment scenario