New Delhi: foreign portfolio investor ,FPIstream in Indian equity market They pumped in over Rs 30,600 crore in the first fortnight of this month, buoyed by the country’s strong economic growth and strong corporate earnings.
If this trend continues, investments by FPIs in July will surpass the figures recorded in May and June, which stood at Rs 43,838 crore and Rs 47,148 crore, respectively.
With this, investment in the equity market has reached Rs 1.07 lakh crore so far this year, depository data shows.
Market analysts believe that the outlook for FPI inflows into Indian equities remains bright and wide.
“However, a matter of concern is the rising valuations which are getting stretched. The valuations in China are now very attractive compared to valuations in India and hence, the ‘sell China, buy India’ policy of FPIs may not continue for long, said Vijayakumar, chief investment strategy, VK Geojit Financial Services.
According to the data, FPIs have been buying Indian equities continuously since March and have invested Rs 30,660 crore this month (till July 14).
This figure includes investments through wholesale deals and the primary market, apart from investments through stock exchanges.
Before March, foreign investors collectively pulled out Rs 34,626 crore in January and February.
Sonam Srivastava, founder, Wright Research, said several factors such as the country’s strong economic growth, strong corporate earnings and relatively competitive valuations of Indian equities compared to other markets could be responsible for the continued buying by FPIs.
In addition, the emerging capital expenditure cycle, revival of Indian manufacturing and a strong banking sector all seem to be playing a strong role in India’s compelling story, he said.
Divam Sharma, Founder green portfoliosaid the major reason for the inflow was investment in Adani group companies.
Additionally, the belief in the US that the Federal Reserve will soon start reversing interest rates and that the chances of a recession in the US are minimal is driving US markets higher and increasing the appetite of growth markets including India Is. , He added.
Vijayakumar of Geojit said, “Friday’s fall in dollar index below 100, which is the lowest level in one year, is favorable for emerging markets. Among emerging markets, India is the largest recipient of FPI inflows YTD.”
During the period under review, foreign investors infused Rs 1,076 crore into the Indian debt market, apart from equity.
In terms of sectors, FPIs continue to invest in financials, automobiles, capital goods, realty and FMCG.
FPI buying in these sectors has contributed to the rise in prices of stocks in such sectors. Sensex And Nifty reached record high.
If this trend continues, investments by FPIs in July will surpass the figures recorded in May and June, which stood at Rs 43,838 crore and Rs 47,148 crore, respectively.
With this, investment in the equity market has reached Rs 1.07 lakh crore so far this year, depository data shows.
Market analysts believe that the outlook for FPI inflows into Indian equities remains bright and wide.
“However, a matter of concern is the rising valuations which are getting stretched. The valuations in China are now very attractive compared to valuations in India and hence, the ‘sell China, buy India’ policy of FPIs may not continue for long, said Vijayakumar, chief investment strategy, VK Geojit Financial Services.
According to the data, FPIs have been buying Indian equities continuously since March and have invested Rs 30,660 crore this month (till July 14).
This figure includes investments through wholesale deals and the primary market, apart from investments through stock exchanges.
Before March, foreign investors collectively pulled out Rs 34,626 crore in January and February.
Sonam Srivastava, founder, Wright Research, said several factors such as the country’s strong economic growth, strong corporate earnings and relatively competitive valuations of Indian equities compared to other markets could be responsible for the continued buying by FPIs.
In addition, the emerging capital expenditure cycle, revival of Indian manufacturing and a strong banking sector all seem to be playing a strong role in India’s compelling story, he said.
Divam Sharma, Founder green portfoliosaid the major reason for the inflow was investment in Adani group companies.
Additionally, the belief in the US that the Federal Reserve will soon start reversing interest rates and that the chances of a recession in the US are minimal is driving US markets higher and increasing the appetite of growth markets including India Is. , He added.
Vijayakumar of Geojit said, “Friday’s fall in dollar index below 100, which is the lowest level in one year, is favorable for emerging markets. Among emerging markets, India is the largest recipient of FPI inflows YTD.”
During the period under review, foreign investors infused Rs 1,076 crore into the Indian debt market, apart from equity.
In terms of sectors, FPIs continue to invest in financials, automobiles, capital goods, realty and FMCG.
FPI buying in these sectors has contributed to the rise in prices of stocks in such sectors. Sensex And Nifty reached record high.