New Delhi Foreign Portfolio Investors (FPIs) remained net buyers to the tune 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 in equities by FPIs ₹467 crore in the loan segment between October 1-8.
total net investment was ₹1,997 crores.
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 USD 624 million, USD 29 million and USD 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 USD 2,211 million, USD 841 million and USD 37 million respectively, Chauhan 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 as well as it will be crucial in determining the direction of foreign flows into Indian equities, Srivastava said.
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