On a yr-on-yr foundation, the worth of such investments rose 26 per cent from USD 584 billion in December 2022. (Representative picture)
The worth of FPIs funding was at USD 651 billion within the September quarter of the present fiscal.
The worth of FPIs (Foreign Portfolio Investors) holding in Indian equities reached USD 738 billion within the three months ended December 2023, marking a surge of 13 per cent from the previous quarter, pushed by the sturdy efficiency of the home inventory market, in accordance with a report by Morningstar.
The worth of FPIs funding was at USD 651 billion within the September quarter of the present fiscal.
On a yr-on-yr foundation, the worth of such investments rose 26 per cent from USD 584 billion in December 2022.
“This could be attributed to the good performance of the domestic equity markets as well as strong net inflows from FPIs,” the report famous.
However, FPIs’ contribution to Indian fairness market capitalisation fell marginally through the quarter below evaluate to 16.83 per cent from 16.95 per cent within the earlier quarter.
After withdrawing USD 5.38 billion within the September quarter, overseas buyers have been internet patrons within the Indian fairness markets to the tune of USD 6.07 billion within the three months ended December 2023 owing to the decline in US Treasury bond yields. Also, the itemizing of IPOs and the autumn in crude costs introduced overseas buyers again.
“The political stability following the Bharatiya Janata Party’s victory in three major state elections created a favorable climate for investors. Additionally, the robust performance of the Indian economy compared to other similar economies drew investor interest,” the report famous.
However, this momentum couldn’t be maintained, and FPIs became internet sellers in January this yr and took out USD 3.10 billion from Indian equities on a number of elements together with revenue reserving. Moreover, cautiousness has continued to prevail to date in February.
“The Indian equity markets touched all-time high levels in January, which led FPIs to book some profits. Moreover, uncertainty over the interest-rate scenario led them to stay on the sidelines and wait for further cues before investing in emerging markets like India. Heavy selling by FPIs was also triggered by them offloading their stake in HDFC Bank given its disappointing quarterly results,” the report famous.
Besides this, escalating geopolitical tensions within the Middle East, the US Fed’s hawkish feedback concerning rates of interest, and a pointy surge within the US Treasury bond yields have been additionally among the causes for FPIs to shift their focus away from rising markets, it added.
(This story has not been edited by News18 employees and is printed from a syndicated information company feed – PTI)
