FPI Investment In India: Foreign Investment At Highest Level

FPI Investment in India: The stock market is flooded with money, and foreign investment is at the highest level in 20 months.

Foreign investors (FPIs) invested Rs 51,200 crore in the Indian stock market in August, which is the highest in the last 20 months.

The best part is that this investment has been made at a time when the Indian markets are trading below their highs and the price of crude oil also remains below $100.

Earlier in July, foreign portfolio investors (FPIs) had invested Rs 5,000 crore. In July, FPIs started investing in Indian markets again after 9 months of continuous selling.

Let us tell you, FPI started selling in October last year and it continued till June 2022. During this period, foreign investors had withdrawn 2.46 lakh crores from the Indian stock market.

FPI Investment in India: Indian market became the choice of investors.

Manish Jelloka, Product and Solutions Co-Head, Sanctum Wealth, says that the Indian stock market will continue to attract foreign investors in the coming months.

However, investment in the coming months will be slightly slower than in August.

On the other hand, Arpit Jain, Joint Managing Director, Arihant Capital Markets says that inflation, dollar value, and the interest rate hike will determine the impact of FPIs.

According to data provided by depositories, FPIs invested a total of Rs 51,204 crore in the Indian stock market in August.

The maximum investment by foreign investors in the Indian stock market so far in a month is Rs 62,016 crore, which was done in December 2020.

Investment in these sectors increased.

Jelloka of Sanctum Wealth says that the inflation situation in India is much better than in developed countries. Foreign investors are currently investing only in high-quality companies.

In recent times, there has been good buying in financial, capital goods, FMCG, and telecom companies.

Buying thrust in Asian markets.

Along with India, FPIs have also invested in the markets of Indonesia, South Korea, and Thailand, while selling in the Philippines and Taiwan.