Foreign investors had withdrawn money from the Indian market in April and May due to the second wave of Corona, but with the improvement in the situation, there has been an increase in re-investment.
FPI’s confidence in the Indian market increased
In the second phase of the Corona epidemic, there were ups and downs in the Indian economy. The confidence of foreign portfolio investors (FPIs) was also disturbed due to market uncertainty. Due to which he continued to withdraw money from the Indian market continuously for two months. But as soon as the situation improved, FPIs again showed confidence in the Indian stock markets and made a net investment of Rs 13,269 crore.
Himanshu Srivastava, Associate Director (Managerial Research), Morningstar India, said that this could be due to the continuous decrease in COVID-19 cases in the country, which has raised hopes of a faster opening of the economy. He said that good results in the first quarter of the year and positive earnings growth trend in the long run has increased the interest of FPIs in Indian stocks.
Two months heavy withdrawal
According to depository data, FPIs bought Rs 17,215 crore in equities and pulled out Rs 3,946 crore from the bond market between June 1 and June 30. In such a situation, a total investment of Rs 13,269 was made on his behalf during this period. Earlier in May and April, foreign investors had withdrawn Rs 2,666 crore and Rs 9,435 crore.
More investment in these areas
S Ranganashan, Head (Research) LKP Securities said, “The lockdown imposed in April and May was gradually lifted in June and FPIs bought shares in several sectors such as information technology, finance technology and insurance which were large-cap and mid-cap based. .’
Showed interest in these countries too
Kotak Securities Executive Vice President (Equity Technical Research) Shrikant Chauhan said that barring Taiwan, South Korea and the Philippines, FPIs have invested in most emerging economies and Asian markets so far this month.
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