FPI Investment: Foreign investors remain confident, as Rs 10,555 crores have been deposited so far in December
FPI Investment: According to the data of the depository, from December 1 to 16, FPI invested a net of Rs 10,555 crore in shares. Earlier in November also, he had invested more than Rs 36,200 crore.
Highlights
⏩ FPIs have invested a net of Rs 10,555 crore in stocks so far in the month of December.
⏩ In October, foreign portfolio investors pulled out Rs 8 crore from the shares.
⏩ FPI flows negatively in the Philippines, South Korea, Taiwan, Thailand, and Indonesia.
New Delhi. Foreign investors have made a net investment of about Rs 10,555 crore in the Indian equity markets so far in the month of December amid softening of inflation in the US and the stabilization of oil prices. In November, foreign portfolio investors ie FPIs had invested more than Rs 36,200 crore in Indian markets.
Depository data shows that FPIs have made a net investment of Rs 10,555 crore between December 1 and 16 and the reason behind this is the weakening of the dollar index and largely positive macroeconomic trends. Earlier, foreign investors had made a net withdrawal of Rs 7,624 crore from Indian markets in September and Rs 8 crore in October.
Flows of foreign capital depend on global developments
VK Vijayakumar, chief investment strategist, at Geojit Financial Services, believes that foreign capital flows will depend on global developments. The returns on the dollar index and US bonds will depend on the level of inflation in the US.
Increasing volatility in markets around the world
At the same time, Shrikant Chauhan, head of equity research (retail), at Kotak Securities, said that capital inflows from FPIs may remain volatile in the coming times as volatility in markets around the world is increasing. The reason for this is that central banks around the world have expressed their intention to keep interest rates high for a long time to control inflation.
FPI flows remained negative in other emerging markets
Barring India, FPI flows have been negative in December so far in all emerging markets including the Philippines, South Korea, Taiwan, Thailand, and Indonesia.
