New Delhi: foreign portfolio investor ,FPI) continued to show confidence in Indian equities and have pumped in over Rs 30,600 crore so far in June as they bet on the country’s stable macroeconomic profile and strong corporate earnings outlook.
This comes after a nine-month high of Rs 43,838 crore inflows into equities in May, Rs 11,631 crore in April and Rs 7,936 crore in March, depository data showed.
Earlier, FPIs had pulled out over Rs 34,000 crore during January-February.
Going forward, funds flows could turn volatile, especially after the US Fed reiterated its stance that more interest rate hikes may be needed to bring inflation down to the target, albeit at a slower pace. Shrikant Chouhansaid Head of Equity Research (Retail), Kotak Securities.
Other than this, bank of england He said a 50 basis point hike in interest rates could make investors, especially FPIs, wary as rising valuations of Indian markets could pose a challenge.
According to the data, FPIs invested a net Rs 30,664 crore in Indian stocks during June 1-23.
Hitesh Jain, Head of Institutional Equities at Yes Securities, said, “FPIs are showing confidence in Indian equities and are pouring money mainly because of India’s stable macroeconomic profile and strong corporate earnings outlook.”
Himanshu Srivastava, Associate Director, Manager Research, Morningstar India, said sentiments have been boosted after US Federal Reserve has hit the pause button on its rate hike cycle, which has started flowing into emerging markets like India. This shows that FPIs are expecting better growth from Indian markets.
Another factor that has aided the flow to Indian shores is the concern over China’s economic recovery. He said that there is an atmosphere of uncertainty in America and Britain as well.
The flows in recent days could also be passive ahead of rebalancing of MSCI indices, which could lead to additional flows into Indian equities.
Apart from equities, FPIs invested Rs 3,051 crore in the debt market during the period under review due to attractive returns offered by Indian debt securities.
So far in 2023, foreign investors have invested over Rs 59,900 crore in Indian equity and about Rs 4,500 crore in debt markets.
This comes after a nine-month high of Rs 43,838 crore inflows into equities in May, Rs 11,631 crore in April and Rs 7,936 crore in March, depository data showed.
Earlier, FPIs had pulled out over Rs 34,000 crore during January-February.
Going forward, funds flows could turn volatile, especially after the US Fed reiterated its stance that more interest rate hikes may be needed to bring inflation down to the target, albeit at a slower pace. Shrikant Chouhansaid Head of Equity Research (Retail), Kotak Securities.
Other than this, bank of england He said a 50 basis point hike in interest rates could make investors, especially FPIs, wary as rising valuations of Indian markets could pose a challenge.
According to the data, FPIs invested a net Rs 30,664 crore in Indian stocks during June 1-23.
Hitesh Jain, Head of Institutional Equities at Yes Securities, said, “FPIs are showing confidence in Indian equities and are pouring money mainly because of India’s stable macroeconomic profile and strong corporate earnings outlook.”
Himanshu Srivastava, Associate Director, Manager Research, Morningstar India, said sentiments have been boosted after US Federal Reserve has hit the pause button on its rate hike cycle, which has started flowing into emerging markets like India. This shows that FPIs are expecting better growth from Indian markets.
Another factor that has aided the flow to Indian shores is the concern over China’s economic recovery. He said that there is an atmosphere of uncertainty in America and Britain as well.
The flows in recent days could also be passive ahead of rebalancing of MSCI indices, which could lead to additional flows into Indian equities.
Apart from equities, FPIs invested Rs 3,051 crore in the debt market during the period under review due to attractive returns offered by Indian debt securities.
So far in 2023, foreign investors have invested over Rs 59,900 crore in Indian equity and about Rs 4,500 crore in debt markets.