November 7, 2022: FPIs show confidence in the Indian Economy
Foreign investors, who had pulled out from the Indian markets for two months, made a strong comeback in the first week of November, buying shares worth Rs 15,280 crore in the domestic equity markets. Analysts said foreign investors bought heavily in the Indian markets in hopes of a softening of policy rate hikes by the US Federal Reserve. Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said inflows of Foreign Portfolio Investment (FPIs) may remain volatile in the near term in view of the monetary tightening shocks. Along with this, the geopolitical situation can also become a factor.
According to data from depositories, FPIs invested Rs 15,280 crore in Indian equity markets between November 1 and 4. Earlier, FPIs had net outflows worth Rs 8 crore from Indian markets in October and Rs 7,624 crore in September. In August 2022, FPIs had net purchases of shares worth Rs 51,200 crore. In July 2022, the net purchases were of about Rs 5,000 crore. For the preceding nine months, FPIs were constant sellers. In this way, so far this year, FPIs have made a total net withdrawal of Rs 1.53 lakh crore from the Indian markets.
Manish Jelloka, Co-Head of Product and Solutions, Sanctum Wealth, said, “The strong presence of FPIs in the first week of November has been due to the expected softening on the part of the Federal Reserve.” VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “FPI buying in the Indian market is an important aspect even in times of higher US bond yields and dollar strengthening. This reflects the confidence of FPIs in the Indian economy.”
—by Team DiGiNews360