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Foreign portfolio investors' participation in the Indian equity and derivative markets is increasing on a daily basis while new Indian investors from tier-3 and tier-4 cities are set to create a significant influence in the domestic markets, says an industry expert. "FPIs are banking on steady returns on their investments which is backed by the country's projected steady economic growth in the years ahead, we are expecting participation from new Indian traders to contribute significantly to the multi-fold increase in trading volume over the next five years, said Ajay Garg, Director and CEO of Delhi-headquartered SMC Global Securities Ltd. There is a lot of foreign interest in the Indian market, especially FPIs participating in high frequency and medium frequency trading, he said, adding that SMC was currently serving around 60 investment-loaded FPIs and more have lined up to become members of the group. Garg said that SMC is working on capturing more FPI business, given that the ...
Foreign Portfolio Investors (FPIs) continued their bullish stance on the country's debt markets with a net infusion of over Rs 15,000 crore so far this month, on the back of inclusion of Indian government bonds in the JP Morgan Index along with relatively stable economy. This followed a net investment of Rs 19,836 crore in January, making it the highest monthly inflow in more than six years. This was the highest inflow since June 2017, when they infused Rs 25,685 crore. On the other hand, foreign investors pulled out more than Rs 3,000 crore from equities during the period under review. Before this, they withdrew a massive Rs 25,743 crore in January, data with the depositories showed. "The main trigger for this divergent trend in equity and debt is the high valuation in the Indian equity market and the rising bond yields in the US," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. Himanshu Srivastava, Associate Director - Manager Research, Morningstar
Foreign portfolio investors (FPIs) infused Rs 11,630 crore in the Indian equity markets in April on the reasonable valuation of stocks and appreciation in the rupee. This came after FPIs infused a net sum of Rs 7,936 crore in equities in March, mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners. However, if one adjusts for the investments of GQG in Adani Group, the net flow was negative. Going forward, the outlook for FPI flow is expected to remain volatile due to the tight monetary policy of the US Federal Reserve. The interest rate hike by 25 basis points in the coming policy meeting as indicated by the US Fed minutes, could impact FPI investments, Sonam Srivastava, founder of investment advisory firm Wright Research, said. However, the stability of the Indian economy compared to other emerging markets and reasonable valuations may continue to attract FPIs to Indian equities, she added. According to data from the depositories, FPIs started