October 11, 2021 4:15:57 am
Foreign portfolio investors (FPIs) invested around Rs 1,997 crore so far in October, as the domestic market continued to remain a competitive investment destination from a long-term perspective.
According to depositories data, FPIs poured in Rs 1,530 crore in the equities segment and Rs 467 crore into debt between October 1-8. The total net investment stood at Rs 1,997 crore.
For the past two months, FPIs have been net buyers, having invested Rs 26,517 crore in September and Rs 16,459 crore in August.
“A stand out feature of FPI flows in recent weeks is the outflows from banking and inflows into IT,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. Even though IT is highly valued, this segment is attracting increasing flows since earnings visibility is high in the segment while banking is struggling with poor credit growth and rising asset quality concerns, he added.
“From the long-term perspective, India continues to be an important and competitive investment destination, and that is where Indian equities keep on attracting FPI flows at regular intervals, as is evident this week,” said Himanshu Srivastava, associate director—manager research, Morningstar India.
He further said that volatility in flows may continue. With markets trading near all-time high levels, profit-booking by FPIs from time to time cannot be ruled out.
India, Philippines and Thailand reported FPI inflows of $624 million, $29 million and $121 million, respectively, said Shrikant Chouhan, 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, he added.
Going forward, volatility in global markets and global slowdown may hit foreign flows moving into Indian shores, Srivastava said. —WITH PTI
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