According to depository data, Rs 1,530 crore was invested by FPIs in equities and Rs 467 crore in the debt segment between October 1-8.
Foreign portfolio investors (FPIs) remained net buyers of ₹1,997 crore so far in October as India remains a competitive investment destination from a long-term perspective.
According to depository data, Rs 1,530 crore was invested by FPIs in equities and Rs 467 crore in the debt segment between October 1-8.
The total net investment stood at ₹1,997 crore.
FPIs have been net buyers for two consecutive months and have invested ₹26,517 crore in September and ₹16,459 crore in August.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “A distinguishing feature of FPI inflows in recent weeks is outflows from banking and inflows into IT.”
He said that even though IT is highly valued, the segment is attracting increasing inflows as the segment has higher income visibility, while banking is grappling with concerns of bad credit growth and rising asset quality, They said.
Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.
He further said that the fluctuating flow may continue.
Periodic profit booking by FPIs cannot be ruled out as the market is trading close to the all time highs. India, Philippines and Thailand reported FPI inflows of $624 million, $29 million and $121 million respectively, said Shrikant Chauhan, Head-Equity Research (Retail), Kotak Securities.
On the other hand, Taiwan, South Korea and Indonesia reported FPI outflows of $2,211 million, $841 million and $37 million, respectively, Mr. Chouhan said.
In future, volatility in global markets as well as a global slowdown may affect foreign inflows into Indian shores.
In addition, any direction by the US Fed to ease stimulus measures will destabilize FPI inflows into emerging markets and will also be instrumental in determining the direction of foreign flows into Indian equities, Mr. Srivastava said.
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