There is good news for the Indian Stock Markets. Foreign investors have started buying again. Prior to this, he has sold in the Indian market for six consecutive months. So far in April, he has invested Rs 7,707 crore in the Indian market. Actually, he has used the correction in the market for shopping.
Has the attitude of foreign investors changed?
However, it is too early to consider this a change in the attitude of foreign investors. Morningstar manager research Himanshu Srivastava said that it is too early to consider this a change in the attitude of foreign investors in terms of FPI inflows. We will have to see how the picture pans out over the next few weeks or months. Only then will the exact position be known.
Are FPIs buying at cheap rates?
Srivastava said that it is also possible that considering the prevailing conditions, foreign investors are making changes in their portfolios. Actually, the recent fall in the stock market has created investment opportunities. Foreign investors (FPIs) must have thought of using this opportunity. However, in the last two trading sessions, they have sold.
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FPI sells for six consecutive months
In the last six months, FPIs have sold heavily in the Indian market. From October last year to March this year, he has sold Rs 1.48 lakh crore. The main reason for this was the increase in the interest rate in America. The geopolitical situation has changed drastically since Russia’s invasion of Ukraine.
Have also invested in debt market
FPIs have also invested in the debt market. His investment in the debt market in April is Rs 1,403 crore. Earlier, he had sold Rs 8,705 crore in the debt market in February and March. Shrikant Chauhan, Head (Equity Research-Retail), Kotak Securities said that FPI flows are expected to remain volatile in the times to come. The reason for this is the uncertain environment. Crude oil prices are very high.
Changed trend due to increase in interest rate in America
Atanu Agarwal, founder of Upside AI, said inflation in the US and Europe is at several-year highs. In India also it is outside the purview of RBI. Minutes of the March meeting of the US central bank Federal Reserve show that the central bank is reducing its balance sheet along with raising interest rates. Its purpose is to control inflation. He added that FPI flows will remain negative if the Fed continues to hike interest rates.
Domestic investors supported the market
FPIs have sold Rs 1.4 lakh crore in the stock market in the financial year 2021-22. Despite this, the Nifty has gained 19 per cent during this period. The reason for this was buying by domestic institutional investors and retail investors. However, the buying capacity of both is limited, Aggarwal said.