Good news for Indian economy, foreign investors invested heavily in November

The process of aggressive buying of foreign portfolio investors (FPIs) in the Indian stock markets continues. So far in November, he has invested Rs 30,385 crore in stocks.

The process of aggressive buying of foreign portfolio investors (FPIs) in the Indian stock markets continues.

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The process of aggressive buying of foreign portfolio investors (FPIs) in the Indian stock markets continues. So far in November, he has invested Rs 30,385 crore in stocks. Foreign investors are once again betting on India due to the stability of the Indian rupee and the domestic economy being stronger than other economies of the world.

What did the experts tell the reason?

VK Vijayakumar, chief investment strategist at Geojit Financial Services, said going forward, FPIs will not be very aggressive as they will avoid over-buying due to high valuations. He said that currently valuations in China, South Korea and Taiwan markets are very attractive and FPI money can go towards those markets.

According to the depository data, during November 1 to 18, FPIs have netted Rs 30,385 crore in stocks. Earlier in the last month i.e. in October, he had withdrawn Rs 8 crore purely from the Indian markets. In September, he had withdrawn Rs 7,624 crore. In August before September, FPI had made a purchase of Rs 51,200 crore. At the same time, in July, he was buying Rs 5,000 crore. Earlier, from October last year, FPIs were sold for nine consecutive months.

Got the benefit of the boom in the stock market

Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said that the reason for the recent investment by FPIs is the rise in Indian stock markets, stability in the economy and better position of rupee compared to other currencies. He said that if we talk on the global front, inflation in the US has increased less than expected, due to which there is a possibility that the Federal Reserve will not increase interest rates aggressively. This has improved sentiment and increased FPI investment in the Indian market.

However, FPIs have pulled out Rs 422 crore from the debt or bond market during the period under review. In this month, apart from India, FPI flows have also been positive in the markets of Philippines, South Korea, Taiwan and Thailand. Let us tell you that this week the direction of the local stock markets will be decided by the global trend and the flow of foreign portfolio investors (FPIs). Expressing this opinion, analysts said that no big data is to come on the domestic front this week.

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