FPIs Bring Rs 986 Crores Into Indian Equities In August, Caution Continues
By BW CFO World Online Bureau
According to data from depositories, FPIs bought equities worth Rs 986 crore and invested Rs 13,494 crore in the debt segment between the 2nd to the 27th of August. This brought in a total net investment of Rs 14,480 crore. In July, they were net sellers at Rs 7,273 crore.
Foreign portfolio investors (FPIs) invested only Rs 986 crores in Indian equities during August as cautiousness persists.
According to data from depositories, FPIs bought equities worth Rs 986 crore and invested Rs 13,494 crore in the debt segment between the 2nd to the 27th of August. This brought in a total net investment of Rs 14,480 crore. In July, they were net sellers at Rs 7,273 crore.
“The trend of foreign flows into the Indian equity markets have not been encouraging ever since US Fed indicated tightening of its monetary policy stance earlier than what was initially projected,” said Himanshu Srivastava, associate director (manager research), Morningstar India.
Even after successful vaccination drives, signs of economic recovery, starting up of new businesses, markets touching all-time high and more yet there is some cautiousness amongst the foreign investors.
Other than India, all other emerging markets witnessed positive inflows, noted Shrikant Chouhan, executive vice-president (equity technical research) at Kotak Securities.
Taiwan, Korea, Indonesia and the Philippines reported inflows of $184 million, $166 million, $125 million and $23 million, respectively.
“FPI, going forward, is likely to be influenced by the US Fed commentary expected tonight. A hawkish Fed may rattle markets. Anyway, they are unlikely to commit big fresh money at these stretched valuations,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
(PTI)