Amid outflows globally, FPIs invest Rs 8,642 cr in Indian markets in March

Foreign portfolio investors (FPIs) have invested a net sum of Rs 8,642 crore in Indian markets so far in March.
 

According to depositories data, FPIs poured in Rs 14,202 crore into equities but pulled out Rs 5,560 crore from debt segment between March 1-19.

This took the total net investment to Rs 8,642 crore.

Prior to this, overseas investors had invested Rs 23,663 crore in Indian markets in February and Rs 14,649 crore in January, on a net basis.Foreign portfolio investors (FPIs) have invested a net sum of Rs 8,642 crore in Indian markets so far in March.

According to depositories data, FPIs poured in Rs 14,202 crore into equities but pulled out Rs 5,560 crore from debt segment between March 1-19.

This took the total net investment to Rs 8,642 crore.

Prior to this, overseas investors had invested Rs 23,663 crore in Indian markets in February and Rs 14,649 crore in January, on a net basis.

"After treading cautiously for some time, volatility and correction in the market this week brought them back into domestic equities," said Himanshu Srivastava, associate director - manager research, Morningstar India.

In addition, there is a gush of liquidity in the global financial markets after US announced a USD 1.9 trillion pandemic relief package, which ensured regular flow of assets into emerging markets like India, he added.

Also, a rejig in some of the global indices led to net inflows into Indian equities. 

However, VK Vijayakumar, chief investment strategist at Geojit Financial Services, noted that FPI flows have turned choppy following the spike in bond yields in the US.

Globally, markets have turned cautious on inflation fears, he added.

Except India, most Asian and emerging markets have seen FPI outflows. 

"Taiwan has witnessed the highest FPI outflows this month to date at USD 4.5 billion. This calendar year to date, South Korea and Taiwan have seen FPI outflows of USD 11 billion and USD 7 billion, respectively. India is the only emerging market to have received healthy FPI flows," said Rusmik Oza, executive vice president, head of fundamental research at Kotak Securities.

The rising number of cases in India might temporarily affect the markets but that is not going to change India''s longer term appeal, as per co-founder and COO at Groww, Harsh Jain.

"After treading cautiously for some time, volatility and correction in the market this week brought them back into domestic equities," said Himanshu Srivastava, associate director - manager research, Morningstar India.

In addition, there is a gush of liquidity in the global financial markets after US announced a USD 1.9 trillion pandemic relief package, which ensured regular flow of assets into emerging markets like India, he added.

Also, a rejig in some of the global indices led to net inflows into Indian equities. 

However, VK Vijayakumar, chief investment strategist at Geojit Financial Services, noted that FPI flows have turned choppy following the spike in bond yields in the US.

Globally, markets have turned cautious on inflation fears, he added.

Except India, most Asian and emerging markets have seen FPI outflows. 

"Taiwan has witnessed the highest FPI outflows this month to date at USD 4.5 billion. This calendar year to date, South Korea and Taiwan have seen FPI outflows of USD 11 billion and USD 7 billion, respectively. India is the only emerging market to have received healthy FPI flows," said Rusmik Oza, executive vice president, head of fundamental research at Kotak Securities.

The rising number of cases in India might temporarily affect the markets but that is not going to change India''s longer term appeal, as per co-founder and COO at Groww, Harsh Jain.

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