Edited By: Namit Singh Sengar
Last Updated: February 20, 2023, 12:08 IST
FPIs have been internet sellers because the starting of the yr and until February 10, they had been internet sellers to the tune of Rs 38,524 crore in 2023. (Representative picture)
So far this yr, international traders have pulled out a internet sum of Rs 30,858 crore from equities, whereas invested a internet quantity of Rs 5,944 crore in debt markets.
Foreign traders appear to have shifted their focus again on the Indian fairness markets as they turned internet patrons final week with an funding of over Rs 7,600 crore.
This got here following a internet outflow of Rs 3,920 crore by international portfolio traders (FPIs) from equities within the previous week (February 7-12), information with the depositories confirmed.
Reportedly, as per the information, FPIs have bought equities value a internet sum of Rs 7,666 crore within the week ended February 17.
“As the markets started to get well from the Adani shock, the flows from FPIs additionally improved, suggesting their renewed curiosity within the prospects of the Indian fairness markets,” news agency PTI quoted Himanshu Srivastava, associate director – manager research at Morningstar India, as saying.
It appears that the sustained selling in India witnessed from early January is over but they might sell again at higher levels, VK Vijayakumar, chief investment strategist at Geojit Financial Services, said.
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Given a more stable economy, strong macros and prospects of higher economic growth, FPIs are now willing to look beyond valuation and other concerns, and pay a premium to the Indian markets, which has the potential to deliver better returns, Srivastava added.
FPIs have been net sellers since the beginning of the year and till February 10, they were net sellers to the tune of Rs 38,524 crore in 2023, including Rs 28,852 crore in January amid concerns of the continuing rate hikes by the major central banks globally to curb in inflation.
Also, the outflows from Indian equities could be attributed to relatively higher valuations, which prompted the FPIs to shift their focus towards other markets having relatively attractive valuations.
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The distinctive feature of stock market performance this year is India’s underperformance with NSE’s benchmark index Nifty 50 down by 1.4 per cent so far. On the other hand, Taiwan index is up by 8.3 per cent and Shanghai composite is up by 3.4 per cent.
In terms of sector, FPIs have been buyers in autos and auto components and construction, while they were sellers in banking and financial services in which they are sitting on good profits, Vijayakumar said.
So far this year, foreign investors have pulled out a net sum of Rs 30,858 crore from equities, while invested a net amount of Rs 5,944 crore in the debt markets.
(With PTI inputs)
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