FPIs go bullish again on buying equities in Indian market
As per NSDL data, FPIs were buyers of equity in the cash market on all days of the week.
As per NSDL data, FPIs were buyers of equity in the cash market on all days of the week.
In the fortnight of September, foreign investors have infused Rs 27,856 crore in domestic equities.
In the month of August so far, foreign investors infused Rs 11,366 crore in the Indian debt market, pushing the net inflow tally in the debt segment to over the Rs 1-lakh-crore mark.
In July, foreign investors infused Rs 32,365 crore into Indian equities on the back of expectation of continued policy reforms and sustained economic growth and better-than-expected earnings season.
Foreign Portfolio Investors (FPIs) have raised concerns regarding the Securities and Exchange Board of India’s (SEBI) plan to introduce instant trade settlement in the equity markets.
FPIs had withdrawn a whopping Rs 24,548 crore from Indian equities during October which resulted in the stock markets turning volatile.
The market had not positioned itself for the US 10-year bond yield at 4.95 per cent and, therefore, this unexpected spike in yields will take its toll on equity markets
Foreign portfolio investors (FPI) invested Rs 43,838 crore in the Indian stock markets in May.
The sell-off by the FPIs in March is way more than they pulled out in January and February of Rs 33,303 crore and Rs 35,592 crore, respectively.
Surging reserves can be a double-edged sword as there is a cost to holding them. High reserves will obviously lead to appreciation of the currency and rise in inflation, because capital inflows that result in high reserves are used to buy domestic currency, thereby expanding the domestic monetary base without a corresponding increase in production, and this causes a rise in inflation.
