Foreign Portfolio Investment: FPI Invested Rs 16459 Crore

Foreign Portfolio Investment: Foreign portfolio investors increased in August, invested Rs 16459 crore.

Foreign portfolio investors (FPIs) were net buyers of Rs 16,459 crore in the Indian markets in the month of August, with the majority of investments coming in the debt segment.

On the other hand, depository data shows that investors invested only Rs 2,082.94 crore in the stock, while the debt segment saw an inflow of Rs 14,376.2 crore between August 2 and 3.

The quantum of investment in the debt segment is the highest so far this year.

The main reason for FPIs buying debt is the widening spread between bond yields in the US and India. In America it is below 1.30 percent in 10 years and in Indian, it is above 6.2 percent in 10 years.

In addition, the cost of hedging stability in the Indian rupee has come down. Expectations are also favorable with respect to the exchange rate.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Debt has benefited from equity exposures at high valuations in debt. The ongoing rally in the market and the fear of losing it drove FPIs back to equities in August. ”

“The global outlook has also turned favorable, following the Fed’s message that the economy has ample opportunity to cover, and the rate hike is still far away.”

” This investment in FPIs was net sellers of Rs 7,273 crore in July, came after staying.”

Further, in the first three trading sessions of September, there has been an investment of Rs 7,768.32 crore in the Indian markets (both equity and debt) through FPIs.

Foreign Portfolio Investment: Shrikant Chauhan, Executive Vice President, Equity Technical Research, Kotak Securities.

He said that the “increasing pace of domestic vaccination, a good GST print for July and sharp growth in August trade have contributed to the market, even though the PMI for August remained weak.”

“Yes, India cannot be ignored by global investors given the high growth opportunities.”