FPI investment slows down, Rs 10,689 crore poured into stocks so far in August
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New Delhi: The pace of investment by foreign portfolio investors (FPIs) in the Indian stock markets has slowed down somewhat in August. Due to this, during the last three months, FPI had invested heavily in Indian stocks. Foreign investors have netted Rs 10,689 crore in equity markets so far this month amid high crude oil prices and inflationary risks.
Kotak Securities Ltd. Stock markets may remain volatile this week due to macroeconomic uncertainty and rising bond yields in the US, said Shrikant Chauhan, head of retail research. This allows foreign investors to withdraw from emerging markets including India and increase investment in US securities. VK Vijayakumar, chief investment strategist, Geojit Financial Services, said a weak monsoon in August and its uneven distribution could keep inflation elevated.
This situation will affect the market sentiment. According to the depository data, FPIs have invested Rs 10,689 crore in stocks so far this month i.e. till August 26. Due to this, in the last three months, FPI investment was more than Rs 40,000 crore continuously. In July, FPIs invested Rs 46,618 crore in Indian stocks. His investment in June stood at Rs 47,148 crore.
In May, he had infused Rs 43,838 crore in shares. Earlier, their investment was Rs 11,631 crore in April and Rs 7,935 crore in May. Himanshu Srivastava, Associate Director-Manager Research, Morningstore India, said the main reason for the sluggishness in FPI investments this month was that they were waiting for the US Federal Reserve’s event in Jackson Hole, which would give an indication of the future monetary policy stance. .
The next meeting of the Federal Open Market Committee (FOMC) is scheduled for September 19-20. Apart from equities, FPIs have also invested Rs 5,950 crore in the debt or bond market during the period under review. FPI investment in Indian stocks has reached Rs 1.37 lakh crore this year. At the same time, his investment in the debt or bond market has been Rs 26,400 crore.
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