Monday, February 26, 2024

FPI Inflow: Foreign investors buy shares worth Rs 57,300 crore so far in December, expert opinion

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Foreign investors (FPIs) have made a net investment of Rs 57,313 crore in the stock markets so far in December. This is their highest one-month investment in a year.

Foreign portfolio investors (FPIs) have invested more than Rs 57,300 crore in the Indian stock markets so far in December, given the prospects of political stability. Behind this, data showing strength in India’s economic growth and the continuous fall in US bond yields have also played an important role. Amid this positive sentiment, the total investment of FPIs in the Indian market has crossed Rs 1.62 lakh crore this year.

FPIs invest the most in December

According to the data, FPIs have invested a net amount of Rs 57,313 crore in the Indian equity market so far this month. This is their highest one-month investment in a year. Prior to this, FPI had made a net investment of Rs 9,000 crore in October. However, depositories data showed that foreign investors had pulled out a net amount of Rs 39,300 crore in the months of August and September. Several factors can be attributed to the strong inflow of FPIs into the Indian markets.

What the experts say

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that with US interest rates expected to come down in the new year, FPIs may increase their buying in the Indian market in 2024.

Morningstar Investment Research India co-director and research manager Himanshu Srivastava said that the political stability environment and positive sentiment prevailing in Indian markets have played a major role in this. He further said that the country’s stable and strong economy, impressive earnings of companies and the frequent initial public offerings (IPOs) of many companies have attracted foreign investors to explore investment opportunities in India.

Mayank Mehra, smallcase manager and key partner of Craving Alpha, said, “The engine of the Indian market is running very fast. The growing manufacturing sector with higher-than-expected GDP growth paints a lively picture for investors.

FPIs put in Rs 15,545 crore in debt market so far in December

Talking about bonds, till December 22 this month, FPIs invested Rs 15,545 crore in the Indian debt market. Earlier, Rs 14,860 crore was invested in November and Rs 6,381 crore in October. FPIs have invested the most in financial services, while they also showed interest in sectors like auto, capital goods and telecom.

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