Confidence of foreign investors increased in Indian stock market, huge investment of Rs 57,300 crore
Foreign investors are kind to the Indian stock market. The confidence of foreign investors has increased in the Indian stock market. Foreign portfolio investors (FPIs) have invested more than Rs 57,300 crore in the Indian stock markets so far this month in view of the prospects of political stability. Behind this, the data showing strength in India’s economic growth and the continuous decline in US bond yields have also played an important role. Amidst this positive sentiment, the total investment of FPI in the Indian market this year has exceeded Rs 1.62 lakh crore.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that US interest rates are expected to come down in the new year and in such a situation, FPIs can increase their purchases in the Indian market in the year 2024.
Highest investment in a year
According to the data, FPIs have made a net investment of Rs 57,313 crore in the Indian equity market so far this month. This is his highest investment in a month in a year. Before this, FPI had made a net investment of Rs 9,000 crore in October. However, depository data showed that foreign investors had made a net withdrawal of Rs 39,300 crore in the months of August and September.
Several factors can be attributed to the strong inflows of FPI into Indian markets. Himanshu Srivastava, co-director and research manager, Morningstar Investment Research India, said that the environment of political stability and positive sentiment prevailing in the Indian markets have played an important role in this.
Steadily increasing confidence
He said that the country’s stable and strong economy, impressive growth in corporate earnings and frequent initial public offerings (IPOs) of many companies have attracted foreign investors to explore investment opportunities in India. Mayank Mehra, smallcase manager and principal partner at Craving Alpha, said, “The engine of the Indian market is running very fast. The growing manufacturing sector coupled with higher than expected GDP growth paints a vibrant picture for investors.”
In terms of bonds, Rs 15,545 crore were injected into the Indian debt market during the period under review. Before this, investment of Rs 14,860 crore was made in November and Rs 6,381 crore was invested in October.
FPIs have invested the most in the financial services sector while they have also shown interest in sectors like automobile, capital goods and telecommunications.
