FPI Buying: The process of aggressive buying of foreign portfolio investors (FPIs) in the Indian stock markets continues. So far in November, he has invested Rs 30,385 crore in shares. Foreign investors are once again betting on India due to the stability of the Indian rupee and the domestic economy being stronger than other economies of the world.
What do depository figures say
According to the depository data, during November 1 to 18, FPIs have netted Rs 30,385 crore in shares. Earlier in the last month i.e. in October, he had withdrawn Rs 8 crore purely from the Indian markets. In September, he had withdrawn Rs 7,624 crore. In August before September, FPI had made a purchase of Rs 51,200 crore. And in July, he was buying Rs 5,000 crore. Earlier, from October last year, FPIs were sold for nine consecutive months.
Know the opinion of financial experts
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said that the reason for the recent investment by FPIs is the rise in Indian stock markets, stability in the economy and better position of rupee compared to other currencies. He said that if we talk on the global front, inflation in the US has increased less than expected, due to which there is a possibility that the Federal Reserve will not increase interest rates aggressively. This has improved sentiment and increased FPI investment in the Indian market.
Going forward, FPI’s stance will not be aggressive
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said going forward, FPIs will not be very aggressive as they will avoid over-buying due to high valuations. He said that currently valuations in China, South Korea and Taiwan markets are very attractive and FPI money can go towards those markets.
However, in the period under review, FPIs have withdrawn Rs 422 crore from the loan or bond market. In this month, apart from India, FPI flows have also been positive in the markets of Philippines, South Korea, Taiwan and Thailand.
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