According to depository data, FPIs have invested a net Rs 3,202 crore in the Indian stock markets during January 3-7.
REIT: Foreign portfolio investors (FPIs) have expressed confidence in the Indian market after three consecutive months of selling. In the first week of January, FPIs have invested Rs 3,202 crore in the stock markets. FPI investments have improved due to the ‘correction’ in the market. According to depository data, FPIs have invested a net Rs 3,202 crore in the Indian stock markets during January 3-7. Experts say that the possibility of a hike in interest rates by the US Federal Reserve going forward, rising concerns about Omicron and high inflation levels will keep FPI investments in the Indian markets volatile.
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What do experts say
- The fresh investment by FPIs comes after their net withdrawal of Rs 38,521 crore from the Indian markets during October-December, 2021. Earlier in September last year, FPIs had made a net investment of Rs 13,154 crore in the Indian markets.
- Himanshu Srivastava, Associate Director – Research Manager, Morningstar India said, “The intermittent buying by FPIs is due to the interim ‘correction’ in the market. Because of this, they have got a good buying opportunity.
- He said that FPIs will be cautious in their investments amid the rapid increase in cases of corono virus infection across the world including India.
- In the first week of January, FPIs have made a net investment of Rs 183 crore in the Indian debt or bond market. Last year, he sold Rs 1.04 lakh crore.
- VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services, said the main concern of FPIs is the tightening of the monetary stance in the US. As yields on bonds in the US rise, they may sell in emerging markets.