Rate hikes, elevated valuation, and China reopening lead to reallocation of funds
After pulling out money from Indian equities market in the past two months, FPIs made a strong come back in November with a net investment of Rs 36,329 crore on weakening of the US dollar index and positivity about overall macroeconomic trends. This was the third month (July, August and November) in this year when FPIs witnessed net inflows. Moreover, they started the month of December on a positive note. Going forward, flow trajectory is expected to remain positive in December. However, some shift could be seen from expensive stocks to value stocks, Anita Gandhi, Whole Time Director and Head Institutional Business at Arihant Capital, said. India will get its fair share of Foreign Portfolio Investors (FPIs) money, however, the high valuation will be a deterrent, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. According to data with the depositories, FPIs invested a net sum of Rs 36,329 crore in equities in November. "The cooling US inflation, slug
Foreign investors have been aggressively buying Indian equities in November, investing Rs 30,385 crore this month so far, on stabilisation in rupee and resilience of the domestic economy
After withdrawing funds in the last two months, foreign investors came back strongly in the first week of November and infused Rs 15,280 crore in Indian equities
FPIs offloaded nearly Rs 2 trillion ($265 billion) in Indian equities during Samvat 2078, data show.
This was way higher than a net investment of nearly Rs 5,000 cr by Foreign Portfolio Investors in entire July, data with depositories showed
After turning net buyers last month, foreign investors continued their positive stance on Indian equities and invested over Rs 14,000 crore in first week of August amid softening of the dollar index
However, analysts do caution against intermittent phases of withdrawals by FIIs given macro-economic developments across major world economies
There has been an exodus of foreign funds from the Indian equity market over the last nine months
Wary of the scenario on the global and domestic fronts, foreign investors continued to withdraw from Indian equity markets and pulled out close to Rs 14,000 crore in this month so far
The value of foreign portfolio investors' (FPI) holdings in domestic equities reached $612 billion in the March quarter, down 6 per cent from the preceding quarter, according to a Morningstar report.
Most analysts expect the markets to remain choppy in FY23 amid multiple headwinds. The ongoing geopolitical crisis, they feel, will keep commodity prices elevated and market gains in check
Consequently, FPIs' contribution to Indian equity-market capitalisation also fell during the quarter under review to 18.3 per cent from 19 per cent for the three months ended September 2021
FPIs remain positive on Indian markets; invest Rs 41,330 cr in Aug so far
Even as ownership of some of the shareholding categories in NSE-listed firms has moderated, the value of holdings in absolute terms rose for a clutch of investor categories
The liquidity-driven rally also lifted shares of smallcap and midcap companies that are poised for their biggest quarterly gain in six years.
Earlier, foreign investors remained net sellers for three consecutive months. They pulled out a net Rs 7,366 crore in May, Rs 15,403 crore in April and a record Rs 1.1 trillion in March
Equities saw a net outflow of Rs 6,883 crore in April and Rs 61,973 crore in March, hit by coronavirus-induced disruptions.
Foreign portfolio investors pulled out Rs 62,000 crore from Indian equities in March
While a coordinated aggressive monetary easing from the central banks is most likely to offer some respite in the near-term, it is unlikely to improve the sentiments