Share Market: Confidence of foreign investors increased in Indian stock market, investment increased by 13% till September-December.
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Share Market Investment: Indian stock market has had a great performance in the last one year. Sensex has given 17.23 percent return in 52 weeks. Whereas, investors have also received returns of about 21.28 percent on Nifty. In such a situation, the value of stake of foreign portfolio investors (FPIs) in the Indian equity market reached $ 738 billion in the December quarter, which is 13 percent more as compared to the September quarter. This information was given in a report of Morningstar. According to the report, the value of FPI investment in the September quarter of the current financial year was $651 billion. Whereas in the December quarter of the financial year 2022-23, the value of such investment was $ 584 billion.
IPO attracted foreign investors
According to the report, this can be attributed to the good performance of domestic equity markets as well as strong net inflows from FPIs. However, the proportionate contribution of FPIs in Indian equity market capitalization fell marginally to 16.83 percent in the quarter under review, from 16.95 percent in the September quarter. After pulling out $5.38 billion in the September quarter, foreign investors were net buyers of $6.07 billion in Indian equity markets in the October-December quarter due to lower US treasury bond yields. Apart from this, the initial public offering (IPO) of many companies and the fall in crude oil prices also brought foreign investors towards the Indian equity market.
atmosphere created by election victory
A report by Morningstar states that the trend of political stability after the victory of the Bharatiya Janata Party in the elections of three major states created a favorable environment for investors. The strong performance of the Indian economy compared to other economies also increased investor interest.” However, this momentum could not be sustained and FPIs became net sellers in January this year. Eager to make profits, FPIs pulled out $3.10 billion from the Indian equity market. Apart from this, vigilance is still maintained in February also.
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