New Delhi: foreign portfolio investor continued to invest in (FPIs) Indian Equity For the fourth straight month as they have infused Rs 16,405 crore so far in June on the country’s strong economic rebound and positive growth outlook. Depository data showed FPI inflows into equities hit a nine-month high of Rs 43,838 crore in May, Rs 11,631 crore in April and Rs 7,936 crore in March.
Earlier, during January-February, FPIs had withdrawn more than Rs 34,000 crore.
Mayank Mehra, smallcase manager and principal partner at financial consultancy Craving Alpha, said, “Going by the current investment trend, we expect FPIs to continue showing interest in the Indian market throughout the month.”
The current economic recovery, positive corporate earnings and supportive policy environment are likely to sustain the flow of funds, he said.
However, valuations may become a concern as Indian markets continue to boom and stricter regulatory norms may also restrict the inflow of foreign funds into India to some extent. Himanshu Srivastavasaid Associate Director-Manager Research, Morningstar India.
According to the data, FPIs invested a net Rs 16,406 crore in Indian equities during June 1-16.
Market experts believe that India’s strong economic comeback and positive growth outlook have attracted the attention of foreign investors.
The continued investment by FPIs is a reflection of their growing confidence in the resilience of the Indian economy and the earning potential of the corporate sector. VK Vijayakumarsaid Chief Investment Strategist at Geojit Financial Services.
Besides, strong economic reforms and a global consensus about measures ahead of the 2024 elections are boosting FPI confidence, Mehra said.
Further, a moratorium on interest rate hike by US Federal ReserveAfter more than a year of consecutive rate hikes, there was an improvement in sentiment and risk appetite among investors, which diverted their investments to Indian shores.
In terms of sector, FPIs continued to buy stocks in financials, automobile and auto components, capital goods and construction-related. He was a seller of IT, metals, power and textile stocks.
Hitesh Jain, Lead Analyst, Institutional Equities at Yes Securities, said money will continue to flow into auto stocks given the strength in passenger car sales and recovery in two-wheeler sales.
He is also bullish on FMCG stocks as rural demand is expected to improve while margins of companies improve amid fall in input costs.
Geojit’s Vijayakumar said since benchmark indices are near record levels and valuations are rich, profit-booking can be expected in the near term.
Apart from equities, FPIs invested Rs 550 crore in the debt market during the period under review on the back of attractive returns offered by Indian debt securities.
So far in 2023, foreign investors have invested over Rs 45,600 crore in Indian equities and close to Rs 8,100 crore in debt markets.
Earlier, during January-February, FPIs had withdrawn more than Rs 34,000 crore.
Mayank Mehra, smallcase manager and principal partner at financial consultancy Craving Alpha, said, “Going by the current investment trend, we expect FPIs to continue showing interest in the Indian market throughout the month.”
The current economic recovery, positive corporate earnings and supportive policy environment are likely to sustain the flow of funds, he said.
However, valuations may become a concern as Indian markets continue to boom and stricter regulatory norms may also restrict the inflow of foreign funds into India to some extent. Himanshu Srivastavasaid Associate Director-Manager Research, Morningstar India.
According to the data, FPIs invested a net Rs 16,406 crore in Indian equities during June 1-16.
Market experts believe that India’s strong economic comeback and positive growth outlook have attracted the attention of foreign investors.
The continued investment by FPIs is a reflection of their growing confidence in the resilience of the Indian economy and the earning potential of the corporate sector. VK Vijayakumarsaid Chief Investment Strategist at Geojit Financial Services.
Besides, strong economic reforms and a global consensus about measures ahead of the 2024 elections are boosting FPI confidence, Mehra said.
Further, a moratorium on interest rate hike by US Federal ReserveAfter more than a year of consecutive rate hikes, there was an improvement in sentiment and risk appetite among investors, which diverted their investments to Indian shores.
In terms of sector, FPIs continued to buy stocks in financials, automobile and auto components, capital goods and construction-related. He was a seller of IT, metals, power and textile stocks.
Hitesh Jain, Lead Analyst, Institutional Equities at Yes Securities, said money will continue to flow into auto stocks given the strength in passenger car sales and recovery in two-wheeler sales.
He is also bullish on FMCG stocks as rural demand is expected to improve while margins of companies improve amid fall in input costs.
Geojit’s Vijayakumar said since benchmark indices are near record levels and valuations are rich, profit-booking can be expected in the near term.
Apart from equities, FPIs invested Rs 550 crore in the debt market during the period under review on the back of attractive returns offered by Indian debt securities.
So far in 2023, foreign investors have invested over Rs 45,600 crore in Indian equities and close to Rs 8,100 crore in debt markets.