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Tag: FPI

  • FPIs Buying In Indian Debt Market As Rupee Remains Stable This Year | Economy News

    Foreign portfolio investors (FPIs) have increased buying in the Indian debt market because the rupee has been stable this year and the stability is expected to continue, market watchers said on Saturday. Bulk of the buying that FPIs are doing now are through the ‘primary market and others’ category. In the cash market, they have been consistent sellers because of the elevated valuations.

    In August, FPIs invested Rs 7,320 crore in equity compared to Rs 32,365 crore in July. They infused more than 11,366 crore in the Indian debt market, pushing the net inflow tally in the debt segment to more than the Rs 1 lakh crore mark in 2024 to date, according to NSDL data.

    Analysts said that fundamental reason for the low FPI interest in the equity market is the high valuation and FPIs have opportunities to invest in much cheaper markets. Leading FIIs have been selectively investing in defensive market segments, focusing on sectors such as healthcare and FMCG.

    On the debt market front, the strong buying trend among FIIs can be traced back to India’s addition to JP Morgan’s Emerging Market government bond indices earlier this June, said Vaibhav Porwal, Co-founder, Dezerv. The US Fed is expected to start its rate cut cycle in September. Historically, rate cut cycles in the US market have not been favourable for their equity markets.

    “We anticipate that FIIs will shift their focus to emerging markets, deploying capital where valuations are more appealing. However, India may not be a significant beneficiary of these flows,” said Porwal. FPIs have been selling in the secondary market, where valuations are perceived to be high, and redirecting their investments towards the primary market, which offers relatively lower valuations.

    The inclusion in global bond indices, attractive interest rates, stable economic growth, shift from equities, and favourable long-term outlook have been the key factors driving FPIs to invest in debt, said analysts.

    According to Vipul Bhowar, director listed investments, Waterfield Advisors, while September is likely to see continued interest from FPIs, the flows would be shaped by a combination of domestic political stability, economic indicators, global interest rate movements, market valuations, sectoral preferences, and the attractiveness of the debt market.

  • FPI Turns Positive In June With Rs 12,170 Crore Investment, But 2024 Net Investment Remains Negative | Economy News

    New Delhi: Foreign Portfolio Investment (FPI) in the Indian equity market turned positive in June with a net investment of Rs 12,170 crore, according to data from NSDL. The data highlights that by June 21, FPIs had injected this amount into the equity market for the month. However, the overall net investment for the calendar year 2024 remains negative, with net selling amounting to Rs 11,194 crore.

    On the last trading session of the previous week, FPIs invested Rs 2,250.20 crore in the Indian markets. The shift in FPI behaviour has been particularly noticeable since June 10, influenced by the election results. (Also Read: Gautam Adani’s 2024 Salary Revealed – Less Than Some Of His Own Employees! Find Out Here)

    “Foreign Portfolio Investors (FPIs) have altered their position in the equity market following the election results, injecting Rs 23,786 crore since June 10th. There are three primary reasons for this positive inflow. First, the continuity of the government assures ongoing reforms. (Also Read: Kolkata Struggles With Soaring Vegetable Prices Due To Scanty Rainfall; Full Details Inside)

    Second, the Chinese economy is decelerating, as evidenced by a 12 percent decline in copper prices over the past month. Third, certain block deals in the market have been eagerly taken up by FPIs,” said Sunil Damania, Chief Investment Officer, MojoPMS.

    In contrast, may saw FPIs withdraw Rs 25,586 crore from the equity market, while in April, they were net sellers with a withdrawal of Rs 8,671 crore. This trend of outflows had created a cautious atmosphere in the market.

    Market experts note that the recent FPI inflows are concentrated in a select few stocks rather than being spread across the market or sectors. They believe that high valuations currently commanded by the Indian equity market will constrain FPI inflows. While June’s figures show a positive net investment, the overall sentiment among FPIs remains one of cautious optimism, tempered by valuation concerns.

    This strategic approach by foreign investors highlights their close monitoring of economic indicators and the government steps before the presentation of budget. As the year progresses, the balance of net investments will likely depend on the evolution of these factors, particularly in the context of global economic conditions and domestic policy continuity.

  • FPIs See Steady Growth In Debt Investment: V.K. Vijayakumar

    The fundamental reason for this sustained FPI flows into debt is the inclusion of Indian bonds in the JP Morgan EM Bond Fund and the Bloomberg Bond Index

  • FPI Selling Stands At Rs 29,519 Crore For This Year

    In February through 16th, FPIs had sold equity worth Rs 6112 crores through the exchange.