FPI Investment: India again becomes the first choice of foreign investors, invested Rs 26,505 crore in the market this week
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FPI Investment: Due to India’s strengthening economy and the ongoing boom in the stock market, foreign investors have once again started investing in the country. Foreign portfolio investors (FPIs) have invested Rs 26,505 crore in Indian equity markets in the first six trading sessions of this month. This is believed to be the effect of BJP’s election victory in three states and strong economic figures. Earlier in October, FPI had made a net investment of Rs 9,000 crore. Depository data shows that foreign investors had withdrawn Rs 39,300 crore from Indian markets in August and September. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that FPI investment inflows are likely to continue in the future. According to the data, FPIs have made a net investment of Rs 26,505 crore in Indian equities till the 8th of December.
What do experts say
Kislay Upadhyay, Founder, Fidelfolio Investments, said the results of the assembly elections in Rajasthan, Madhya Pradesh and Chhattisgarh played an important role in accelerating FPI inflows as it indicates political stability going forward. Vijayakumar said that signs of political stability after the 2024 general elections, strong growth momentum in the Indian economy, decline in inflation, continuous decline in US bond yields and softening of Brent crude prices have turned the situation in favor of India. Is. Himanshu Srivastava, Co-Director – Research Manager, Morningstar Investment Research India, said that the US Federal Reserve has indicated to cut interest rates from the first quarter of next year, which indicates the end of the rising trend in interest rates. This change in stance has weakened the US dollar against other currencies. Apart from this, the decline in US treasury bond yields has inspired foreign investors to invest in Indian equity markets. FPIs have again become buyers of leading banks where earlier they had remained sellers. Apart from this, buying is also being seen in big companies of information technology, telecommunication, automobile and capital products segments.
FPI invested Rs 5,506 crore in the debt market
In terms of bonds, FPIs invested Rs 5,506 crore in the debt market during the period under review. Before this, investment of six years’ highest level of Rs 14,860 crore had come in November and Rs 6,381 crore in October. Foreign investors have invested Rs 1.31 lakh crore in equity markets and Rs 55,867 crore in debt markets so far this year.
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