March 25, 2023

highlights

FPIs invested a net of Rs 31,630 crore in stocks during November 1 to 25.
In October, foreign portfolio investors pulled out Rs 8 crore from the shares.
In the reporting period, FPIs have withdrawn Rs 2,300 crore from the debt or bond market.

New Delhi. Foreign portfolio investors ie FPIs have once again started returning to the Indian stock markets. So far in November, he has netted Rs 31,630 crore in the stock markets. Experts say that after net selling in August and September, there is no possibility of big selling by FPIs going forward.

Why foreign investors are investing in India
According to PTI, FPIs are investing money in Indian stocks due to the possibility of ending the cycle of aggressive increase in interest rates, softening inflation, better-than-expected macroeconomic data from the US and the fighting potential of the Indian economy.

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FPIs were sold for 9 consecutive months from October last year
According to the depository data, during November 1 to 25, FPIs have invested a net Rs 31,630 crore in shares. Earlier in October, he had withdrawn Rs 8 crore and in September Rs 7,624 crore. In August, FPIs were net buyers of Rs 51,200 crore. And in July, he bought shares worth Rs 5,000 crore. Earlier, from October 2021, FPIs were sold for nine consecutive months.

FPI’s stance will be volatile
Shrikant Chauhan, head of equity research (retail), Kotak Securities, said that due to geo-political concerns, the trend of FPIs will remain volatile in the near future.

The rise in the stock markets, the stability of the Indian economy and the rupee is the reason
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said that the reason for the increase in FPI inflow in November is the rise in the stock markets, the Indian economy and the stability of the rupee.

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Withdrawal of Rs 2,300 crore from debt and bond market
So far this year, FPI has pulled out Rs 1.37 lakh crore from stocks. In the reporting period, FPIs have withdrawn Rs 2,300 crore from the debt and bond markets. Apart from India, FPI flows have also been positive this month in the markets of Philippines, South Korea, Taiwan and Thailand.

Tags: fpi, investments, share market

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