Foreign investors have invested ₹30,385 crore in the Indian equity market this November so far. However, going forward, buying by Foreign Portfolio Investors (FPIs) is unlikely to turn very aggressive, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
According to data from depositories, quoted by news agency PTI, investment of ₹30,385 crore by foreign investors in Indian equities from November 1 to 18 came following a net outflow of just ₹8 crore last month and ₹7,624 crore in September.
Prior to these outflows, FPIs were net buyers in August to the tune of ₹51,200 crore and nearly ₹5,000 crore in July. Before that, foreign investors were net sellers in Indian equities for nine months in a row which started in October last year, as per PTI reports.
He also said that valuations in markets like China, South Korea, and Taiwan are very attractive now, hence, more FPI money is likely to move to these markets. So far this year, the total outflow by FPIs in equities stands at ₹1.4 lakh crore.
On the other hand, Vijayakumar further said that the federal reserve may not go for further aggressive rate hikes, which also eased recessionary concerns in the US. This helped improve sentiments and directed foreign flows toward Indian shores.
Strong recovery was seen in the global markets as China slightly eased its ‘zero-COVID policy’, said Shrikant Chouhan, Head – Equity Research (Retail), Kotak Securities, PTI reported.
Speaking about the sectors, Vijayakumar said that FPI buying was seen in IT, autos, and telecom. Foreign investors have pulled out ₹422 crore from the debt market during the period under review.
Apart from India, FPI flows were positive for the Philippines, South Korea, Taiwan, and Thailand so far this month.
(With PTI inputs)
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Read More: Foreign investors add over ₹30,000 cr in Indian market this Nov so far