Business

FPIs Invest Rs 11,557 Crore In Equities

FPIs: Foreign investors have infused a net Rs 11,557 crore in Indian equities in December 2022 so far despite a market correction and increasing concerns over re-emergence of COVID in China and some other parts of the world.

Going ahead, macro data from the US and COVID news will drive FPI flows and the markets in the near term, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

According to data with the depositories, Foreign Portfolio Investors (FPIs) invested a net sum of Rs 11,557 crore in equities during December 1-23.

This comes following a net investment of over Rs 36,200 crore in November primarily due to weakening of the US dollar index and positivity about overall macroeconomic trends.

Also read: PAN Not Linked With Aadhaar To Be Rendered Inoperative

Prior to this, foreign investors pulled out Rs 8 crore in October and Rs 7,624 crore in September, data with the depositories showed.

“Despite correction in the markets, increasing concerns over re-emergence of COVID in some parts of the world and recession worries in the US, FPIs remained net buyers in the Indian equity markets (in December),” said Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.

The fall in net inflow does indicate that foreign investors are gradually turning cautious given the recent developments and ongoing uncertainties, he noted.

“Concerns about COVID spread in China is a sentiment negative and the strong economic data from the US indicate continuation of the hawkish stance of the Fed which is pushing bond yields up and equities down. Only reversal of this trend will trigger a rebound in the market,” Vijayakumar said.

Also read: China Covid: 37 Million People Infected In A Day!

Also, in the midst of the ongoing uncertainty, many investors would also have chosen to book profits with Indian markets touching all time highs recently.

In the first half of December, FPIs were buyers in autos, capital goods, FMCG and real estate stocks, while they were sellers in consumer durables, oil and gas, power and financials.

Overall, FPIs have pulled out a net sum of Rs 1.21 lakh crore from the equity markets so far in 2022.

Foreign investors have withdrawn a net sum of Rs 2,900 crore from the debt markets during December.

Barring India, FPI flows were negative across emerging markets such as the Philippines, South Korea, Taiwan, Thailand and Indonesia so far this month.

Spriha Rai

Recent Posts

Netanyahu To Meloni, Top World Leaders Dial PM Modi To Condemn Pahalgam Terror Attack

Top global leaders called Prime Minister Narendra Modi on Thursday to condemn the Pahalgam terror…

35 mins ago

J&K All-Party Meet Backs Centre, Lauds Kashmiris For Supporting Tourists After Pahalgam Terror Attack

An all-party meeting held in Srinagar on Thursday passed a resolution extending full support to…

1 hour ago

Mukesh Ambani Condemns Pahalgam Terror Attack; Offers Free Treatment To Victims

Reliance Industries Chairman and Managing Director  Mukesh  Ambani on Thursday denounced the 22 April terrorist attack…

2 hours ago

Israel Condemns Pahalgam Terror Attack; Offers Support To India

Prime Minister Narendra Modi spoke with his Israeli counterpart, Benjamin Netanyahu on Thursday, following Tuesday’s terror attack in…

3 hours ago

PM Modi Condemns Pahalgam Terror Attack; Vows Unprecedented Action Against Perpetrators

PM Narendra Modi has expressed deep sorrow over the brutal killing of 26 innocent civilians…

3 hours ago

Pahalgam Terror Attack: Shah And Jaishankar Update President Murmu, Foreign Envoys Briefed At MEA Headquarters

Union Home Minister Amit Shah and External Affairs Minister S. Jaishankar briefed President Droupadi Murmu…

4 hours ago