Net buyers of FPIs in August; Invest ₹16,459 crore

In equities, he made a reasonable investment ₹2,082.94 crore while the debt segment saw an inflow of ₹14,376.2 crore between August 2-31, showed depository data.

The quantum of investment in the debt segment is the highest ever this calendar year.

“The main reason for debt buying by FPIs is the rising spread between bond yields in the US and India. The US 10-year is below 1.30 per cent and the Indian 10-year is above 6.2 per cent.

Also, the stability in INR has reduced the cost of hedging. Expectations are also favorable on the exchange rate. On these high valuations in equity risk-reward loans, said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

For equities, he said, “the market momentum and fear of missing out on momentum may have driven FPIs back into equities in August. The global outlook has also turned favorable as the Fed has sent a clear message that the economy has a lot to offer.” There is more land. Cover and rate hike are still far away.”

The investment came after FPIs remained net sellers in July ₹7,273 crores.

Apart from this, FPIs have seen tremendous jump in the first three trading sessions of September. ₹7,768.32 crore (both equity and debt) in the Indian markets.

Shrikant Chauhan, executive vice-president, equity technical research, Kotak Securities, said rising pace of domestic immunization, a good GST print for July and a sharp rise in August trading trade contributed to the market sentiment, even though the PMI for August was weak. Be.

On the future of FPI inflows, he said India cannot be ignored by global investors given the high growth opportunities.

“In the rest of 2021, global investment remains challenging. Markets are focused on sustaining growth in developed economies. As a result, global investors are looking to emerging markets to diversify risks,” Chouhan said.