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Foreign investors bought shares worth ₹ 14,000 crore in 1 week, why are FPIs bullish on the market? get an expert

Highlights

In the month of July, foreign investors had invested about Rs 5,000 crore.
In the first week of August, the total investment of FPIs was more than the entire investment in the month of July.
Between October 2021 and June 2022, he had pulled out a whopping Rs 2.46 lakh crore in the Indian equity markets.

New Delhi. After being net sellers for nine consecutive months, there has been a change in the attitude of foreign investors (FPIs) since last month and now they have become net buyers. In the first week of August, foreign investors have invested heavily in the Indian stock market. Invested more than Rs 14,000 crore in the first week of August. In the entire month of July, foreign investors had invested around Rs 5,000 crore. In this way, the total investment of FPIs in the first week of August was more than the entire investment in the month of July.

Foreign investors continued their positive outlook on Indian equities amid softening dollar index. FPIs had made huge net withdrawals for nine consecutive months. Between October 2021 and June 2022, he had pulled out a whopping Rs 2.46 lakh crore in the Indian equity markets. Market experts are considering this change in the attitude of foreign investors as a good sign for the Indian stock market.

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Market expected to rise
According to a Live Mint report, Hitesh Jain, Principal Analyst, Institutional Equities, Yes Securities said that FPI inflows are expected to be positive during August, as the worst-case scenario for the rupee is over. Apart from this, crude oil is also trading in a limited range. Jain says that the stock market has seen a strong rally in the recent past only due to the FPI becoming a net buyer.

Foreign investors will remain Bayer
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, says that the dollar index has fallen to 106 from a high of 109 last month. The fall in the dollar index is the main reason for foreign investors turning to the Indian markets. This trend may continue. In the Indian market, foreign investors are investing in sectors like capital goods, FMCG, construction and power. In addition, FPIs made a net investment of Rs 230 crore in the debt market during the period under review.

Also read- Which factors including quarterly results and global cues will decide the market movement this week

Himanshu Srivastava, Associate Director of Research, Morning Star India, says that the US Federal Reserve Chairman Jerome Powell’s claim of not being in the grip of recession has also encouraged foreign investors. Srivastava says that the recent correction in the Indian market has created good buying opportunities for foreign investors, which they have taken advantage of by investing in high quality companies.

Tags: business news in hindi, FPI, stock market

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