FPIs Continue To Invest In Indian Markets

FPIs continue to invest in Indian markets, Rs 7,605 crore invested so far during September.

Continuing to buy into the Indian markets, Foreign Portfolio Investors (FPIs) have made a net investment of Rs 7,605 crore so far in September.

According to the data of depositories, from September 1 to 9, foreign investors invested Rs 4,385 crore in equities and Rs 3,220 crore in the debt segment.

The total net investment during this period stood at Rs 7,605 crore. FPI funding in September came after buying Rs 16,459 crore in August, with a record investment of Rs 14,376.2 crore in the bond market.

Himanshu Srivastava, Research Associate Director, Morningstar India, said about the steady growth of foreign money in the debt segment, “The stability in the Indian currency and rising bond spreads between the US and India put Indian debt at higher risk, due to which Investors must have been attracted and there may have been sudden and high inflows. However, investment in the Indian stock market has been volatile in recent times.”

FPIs continue to invest in India: Apart from this, Himanshu Srivastava also said that “In his address at the ‘Jackson-Hole’ event last week, US Fed President Jerome Powell said that at the moment the Central Bank is not in a hurry to increase the rate and we will wait and watch, working on the strategy. His statement has garnered a lot of positive response from investors and has also boosted their investment sentiment in risk assets.”

According to Himanshu Srivastava, “FPIs would have chosen to be a part of the ongoing bullishness in the Indian stock markets rather than be missing out. However, this week the scenario was a bit different. Uncertainty around the timeline for easing QE (Quantitative Ising) made them Going overboard or bringing in substantial investment in Indian equities.”

Shrikant Chauhan, Executive Vice President, Equity Technical Research, Securities, said, “FPI flows are expected to remain volatile during September-December 2021, as global investment remains challenging. Investors can sustain growth in advanced economies. As a result, they are expected to focus on emerging markets for diversification and India cannot be ignored by global investors considering the growth opportunities.”