Tag: FPI

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Business Economy India News

Positive FPI Inflows Signal Growth for Indian Markets

Capital goods, infra sector, banking are the hot FPI favourites

There was a total net inflow of Rs 2,82,338 crore for both equity and debt in FY24…reports Asian Lite News

The net foreign portfolio investor (FPI) inflows turned green this month, both in the equity and debt segment, and as India enters ‘Amritkaal’, the FPI community will play a major role in positioning it as the third largest economy in the world, market experts said on Saturday.

There was a total net inflow of Rs 2,82,338 crore for both equity and debt in FY24.

According to market watchers, the reason for a quick rebound in the capital markets can be attributed to the positive sentiments, a stable government’s assurance on continuity of reforms, tepid US Fed rates, and strong domestic demand.

“The recent announcements in IFSC Gift City for wide participation for foreign and Indian investors has also diverted the international players to allocate a substantial portion of their global portfolio to India markets,” said Manoj Purohit, Partner and leader, FS Tax, Tax and Regulatory Services, BDO India.

In the first week of this month, FPIs infused Rs 7,962 crore in equity while their debt investments in the same period stood at Rs 6,304 crore.

All eyes are on the budget proposals to be tabled on July 23 which will hopefully announce path-breaking reforms providing India a golden opportunity against the other emerging global markets. “As India enters ‘Amritkaal’, the FPI community will play a major role for the nation to position as the third-largest economy in the world,” said Purohit.

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Business Economy India News

Indian market sees FPI selling spree

Capital goods, infra sector, banking are the hot FPI favourites

During the last three months, FPIs have been sustained buyers in the Indian market having invested a cumulative amount of Rs 1,37,603 crore…reports Asian Lite News

After sustained buying for three months, FPIs have turned sellers in the Indian market, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

During the last seven trading sessions FPIs sold stocks worth Rs 8,545 crore in the cash market. Sharp spike in the US 10-year bond yield above 4 per cent is a near term negative for capital flows to emerging markets, he said.

During the last three months, FPIs have been sustained buyers in the Indian market having invested a cumulative amount of Rs 1,37,603 crore.

If the US bond yields remain high FPIs are likely to continue selling or at least refrain from buying, he said.

FPIs continued to buy autos, capital goods and financials. A significant change in FPI strategy  is that they have started buying IT stocks, which they have been selling earlier. This explains the strength in IT stocks recently, he added.

Domestic equities saw some respite after witnessing selling pressure for three consecutive days on the back of India’s services activity rising sharply to 62.3, its highest in 13 years, fueled by strong demand, says Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

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India News

FPI flows into Indian equities hit new highs

FPIs have been steadily buying in financial services, automobiles, capital goods and construction. Recently they have stepped up buying in FMCG and power…reports Asian Lite News

The flood of FPI flows into India continues with Rs 21,943 crore of inflows (including bulk deals) till 8th of this month, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

If this trend continues, monthly FPI flows in July will exceed the figures in May and June, which were Rs 43,838 crore and Rs 47,148 crore, respectively, he added.

This ‘U’ turn in FPI flows which were negative Rs 34,626 crore in January and February (combined) this year has been the primary driver of the strong rally that we are witnessing in the market since the lows of March.

FPIs have been steadily buying in financial services, automobiles, capital goods and construction. Recently they have stepped up buying in FMCG and power.

The selling trend in IT continues.

FPI strategy is focussed more on country-specific factors rather than sectoral prospects within a country. That’s why they adopted the ‘Sell India, Buy China’ strategy in Jan and February. During these two months FPIs sold in financial services for Rs 15,744 crores, he said.

Now, pursuing the ‘Sell China, Buy India’ strategy, the same FPIs have bought stocks in financial services for Rs 19,229 crore in June alone and this buying trend continues.

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Business Economy India News

FPIs invest Rs 43,838 crore in India

China's investment abroad remained stagnant in first three quarters

FPIs are likely to continue their investment in India in June too since the latest GDP data and high frequency indicators reflect a robust economy gaining further strength….reports Asian Lite News

Foreign portfolio investors (FPI) invested Rs 43,838 crore in the Indian stock markets in May.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the FPIs were aggressive buyers in the market in May having invested Rs 43,838 crore through the stock market and primary market put together.

A survey among foreign portfolio investors showed that India is now the consensus overweight among all emerging markets. In May, India attracted the largest investment among all emerging markets, and FPIs were sellers in China, he added.

FPIs are likely to continue their investment in India in June too since the latest GDP data and high frequency indicators reflect a robust economy gaining further strength. Financials, automobiles, telecom and construction are attracting big investments, he said.

Nifty racing to the all-time high of 18887 and breaking the record are highly possible in the next few trading days. But at record levels, selling pressure is likely since valuations will emerge as a concern, he said.

Joseph Thomas, Head of Research at Emkay Wealth Management, said the the equity market has been holding quite well buoyed by the better than expected national income data, encouraging manufacturing PMI, and finally, a closure to the US debt ceiling discussions.

The positive sentiment created by these events may linger on for some more time.

However, in the immediate term one should be cognizant of the high probability for exports to slowdown with almost all auto companies reporting a decline in the exports component, and a slowdown in FPI flows if the strength in the US unit endures, he said.

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