Foreign portfolio investors (FPIs) had been net purchasers for the second month in a row in the Indian industry with an investment of Rs 26,517 crore in September. As per depositories’ information, FPIs pumped in Rs 13,154 crore into equities and Rs 13,363 crore in the debt segment through September 1-30. The total net investment stood at Rs 26,517 crore. This comes right after an investment of Rs 16,459 crore by FPIs in August.
Most of the key emerging markets witnessed FPI inflows in September with India reporting the highest FPI inflow, noted Shrikant Chouhan, executive vice-president (equity technical analysis) at Kotak Securities.
South Korea saw an FPI investment of USD 884 million, Thailand USD 338 million, and Indonesia USD 305 million, he mentioned.
“The current trend indicates that FPIs are now willing to look beyond these short-term challenges and focus on the larger and long-term picture,” mentioned Himanshu Srivastava, associate director (analysis), Morningstar India.
FPIs are gradually dropping their cautious stance and gaining greater conviction on the Indian markets.
The Indian equity industry presents an appealing investment proposition from the lengthy-term point of view. With an enhancing macro atmosphere and positive outlook, FPIs are once again focusing their interest on Indian equities, he added.
FPI flows is anticipated to stay volatile in the emerging markets, as soon as the US Federal Reserve raise the price, mentioned Chouhan.