edited by: Namit Singh Sengar
Last Update: February 20, 2023, 12:26 IST
FPIs have been net sellers since the beginning of the year and till February 10 they were net sellers in 2023 worth Rs 38,524 crore. (Representational image)
So far this year, foreign investors have pulled out Rs 30,858 crore from equities on a net basis, while in debt markets on a net basis Rs 5,944 crore.
Foreign investors seem to have shifted their focus back to Indian equity markets as they turned net buyers with investments of over Rs 7,600 crore last week.
This came after a net outflow of Rs 3,920 crore by foreign portfolio investors (FPIs) from equities in the previous week (February 7-12), showed depositories data.
Reportedly, as per the data, FPIs have bought equities worth Rs 7,666 crore on a net basis in the week ended February 17.
“As markets began to recover from the Adani blow, FPI inflows also improved, indicating their renewed interest in the prospects of Indian equity markets,” the news agency said. PTI Himanshu Srivastava, Associate Director-Manager Research, Morningstar India said.
There seems to be a continued selloff in India VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the downtrend seen since early January is over, but they could again sell higher.
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Srivastava said given the more stable economy, stronger macro and higher economic growth prospects, FPIs are now willing to look beyond valuation and other concerns and pay a premium for Indian markets, which have the potential to deliver better returns.
FPIs have been net sellers since the beginning of the year and as of February 10, they were net sellers to the tune of Rs 38,524 crore in 2023, including Rs 28,852 crore in January amid concerns over rate hikes issued by major central banks globally. Was in the middle Curb on inflation.
In addition, outflows from Indian equities can be attributed to relatively higher valuations, which prompted FPIs to shift their focus to other markets with relatively attractive valuations.
The distinguishing feature of the stock market performance this year has been India’s underperformance with the benchmark indices of the NSE smelly 50 so far down 1.4 percent. At the same time, there is a gain of 8.3 percent in Taiwan Index and 3.4 percent in Shanghai Composite.
Vijayakumar said that in terms of sectors, FPIs have been buyers in auto and auto components and manufacturing, while they were sellers in banking and financial services, in which they are sitting on decent profits.
So far this year, foreign investors have pulled out Rs 30,858 crore from equities on a net basis, while in debt markets on a net basis Rs 5,944 crore.
(With PTI inputs)
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