Foreign Portfolio Investors have netted Rs 8,642 crore in Indian markets so far in March. According to depository data, from March 1 to 19, FPIs infused Rs 14,202 crore in shares, while they withdrew Rs 5,560 crore from the debt or bond market. Thus, his net investment stood at Rs 8,642 crore.
Earlier in February, FPIs had infused Rs 23,663 crore in Indian markets and Rs 14,649 crore in January. Shodh Himanshu Srivastava, Associate Director-Manager, Morningstar India, said, “After taking a cautious approach for some time this week, FPI has increased investment in stocks due to market fluctuations and correction.” Due to the billion-dollar epidemic relief package, there is much more liquidity available in the global financial markets.
Bond Yield at 14-Month High
On the other hand, investment strategist of Geojit Financial Services VK Vijay Kumar said that the flow of FPI has been affected after increasing returns on bonds in the US. The US 10-year bond yield closed at 1.73 per cent this week. This is the highest level since January 2020. He said that there is a cautious approach in the global markets due to the fear of inflation. He said that FPIs have withdrawn from most Asian markets except India.
Investor cautious in anticipation of inflation and yields rising
Taiwan’s stock market has the highest withdrawal of $ 4.5 billion. In this calendar year, so far, $ 11 billion has been withdrawn from the Taiwan market and $ 7 billion from the South Korean market. According to market experts, investors have become more cautious due to the rise in bond yields and an increase in the inflation rate. Corona cases are increasing rapidly in India. It is possible that its immediate effect may be seen in the next week or so.
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