Winning Bizness Desk
Mumbai. Aggressive buying of Foreign Portfolio Investors (FPIs) in the Indian stock markets continued in the month of November as they have invested Rs 30,385 crore in stocks so far. In this month, apart from India, FPI flows have also been positive in the markets of Philippines, South Korea, Taiwan and Thailand. Foreign investors are once again betting on India due to the stability of the Indian rupee and the domestic economy being stronger than other economies of the world. According to experts in financial services, going forward, FPI's stance will not be very aggressive, as they will avoid excessive buying due to high valuations. He said that currently valuations in China, South Korea and Taiwan markets are very attractive and FPI money can go towards those markets.
FPIs netted Rs 30,385 crore in stocks
According to the depository data, during November 1 to 18, FPIs have netted Rs 30,385 crore in stocks. Earlier in the last month i.e. in October, the withdrew Rs 8 crore purely from the Indian markets while in September, they had withdrawn Rs 7,624 crore. In August before September, FPI had made a deal of Rs 51,200 crore. At the same time, in July, they bought Rs 5,000 crore. Earlier, from October last year, FPIs sold for nine consecutive months.
Pulled out money also ...
However, FPIs have pulled out Rs 422 crore from the debt or bond market during the period under review. Let us tell you that from now on the direction of the local stock markets will be decided by the global trend and the flow of foreign portfolio investors (FPIs). Expressing this opinion, analysts said that no major figures are coming on the domestic front this week.
Fed Reserve may not hike interest rates
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said that the reason for the recent investment by FPIs is the rise in Indian stock markets, stability in the economy and better position of rupee compared to other currencies. He said that if we talk on the global front, inflation in the US has increased less than expected, due to which there is a possibility that the Federal Reserve will not increase interest rates aggressively. This has improved sentiment and increased FPI investment in the Indian market.