Patra says exclusion of new 14/30-yr G-sec from FAR to boost 5/10-yr bond demand
Foreign investors injected over Rs 33,600 crore into Indian equities so far this month on the expectation of continued policy reforms, sustained economic growth and a better-than-expected earnings season. However, they pulled out over Rs 7,200 crore from equities in the last three trading sessions (July 24-26) after the government hiked taxes on Futures and Options trades (F&O) and capital gains from equity investments in the Budget. Market experts believe that Indian equity is well-positioned for the year to attract foreign investments. However, there may be some monthly volatility due to short-term news. "Indian equity market and bond market are favourably placed for the year. This should attract foreign flows into the country. There could be some volatility in the flows on a month-on-month basis due to short-term news flows," Nimesh Chandan, CIO of Bajaj Finserv AMC, said. According to the data with the depositories, foreign portfolio investors (FPIs) have made a net inflow of .
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On the other hand, if BJP fails to win the elections, Nomura expects outflows from the forex channel to be over $30 billion in a couple of weeks.
Foreign investors have pulled out a massive Rs 28,200 crore from Indian equities so far this month, owing to uncertainties about the outcome of the general elections and attractive valuations of Chinese markets. The withdrawal was way higher than a net pullout of over Rs 8,700 crore in April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Going forward, there is likely to be a dramatic change in foreign portfolio investors' (FPIs) equity flows in response to election results. Political stability will attract huge inflows in the Indian market, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. Following the Lok Sabha elections, FPI inflows into India could strengthen due to three key factors -- potential easing of interest rates by the US Federal Reserve, positive resolutions in global geopolitical tensi
Foreign investors pulled out a massive Rs 17,000 crore from Indian equities in the first 10 days of the month owing to general election and the uncertainty surrounding its outcome coupled with expensive valuations and profit booking. This was way higher than a net withdrawal of Rs 8,700 crore in the entire April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Looking ahead, post-general elections, corporate India's strong financial performance in Q4 FY24 is anticipated to be rewarded. While FPIs may adopt a cautious stance until the election results are clear, favourable outcomes and established political stability could see their return in significant numbers, Trivesh D, COO at Tradejini, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) experienced a net outflow of Rs 17,083 crore in equities
Apart from the bond yields and geopolitical crisis, another trigger for FPI selling was the tweak in India's tax treaty with Mauritius, which would now impose higher scrutiny on investments
The Nifty 50 and BSE Sensex rose about 1.6% each last month, as data showing sustained strength in Asia's third-largest economy drove domestic and foreign buying
Foreign inflows of Rs 47,105 crore into debt in CY23 at 6-year high
Ample room for FPI investment, fundamental headwinds drive premiums down
The value of foreign portfolio investors' holdings in the domestic equities reached USD 626 billion in the three months ended June 2023, which was 20 per cent higher from the year-ago period, according to a Morningstar report. This could be attributed to good performance in the domestic equity markets as well as strong net inflows from foreign portfolio investors (FPIs). According to the report, the value of FPIs' investments in Indian equities rose from USD 523 billion as of June 2022 to USD 626 billion at the end of June 2023. On a quarter-on-quarter basis, the value of such investment rose 15 per cent from USD 542 billion recorded in the three months ended March this year. This has helped in pushing FPIs' contribution to Indian equity market capitalisation marginally to 17.33 per cent for the quarter under review from 17.27 per cent for the March quarter. After pulling out funds to the tune of USD 3.2 billion from the Indian equities in the March quarter, FPIs took a sharp U-tu
In the past three trading days, Adani Energy Solutions and Adani Power have rallied more than 12 per cent after promoter and foreign portfolio investors (FPI) bought stake via open market
The second highest inflows were seen in Taiwan, which was less than $6 billion in the same time frame.
India's macroeconomic fundamentals are resilient, with growth/inflation dynamics better than those of many developed markets
Trailing 12-month FPI flows currently at $7.3 billion-most since November 2021
Interest comes days before the launch of NYMEX WTI Crude Oil and Natural Gas (Henry Hub) derivatives contracts by NSE
Strong flows into domestic banks even as their developed world counterparts reeled under pressure was underpinned by improved outlook
Buying, selling by MFs, FPIs have a bigger impact on markets than other investor classes
The market breadth was positive with 2,036 stocks advancing and 1,480 declining
After pulling out funds in the past two months, Foreign investors have invested Rs 7,936 crore in the Indian 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 is still negative, meaning FPIs have withdrawn money even in March, Sanchit Garg, Co-founder & CEO, GLC Wealth Advisor LLP, said. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the sustained selling by Foreign Portfolio Investors (FPIs) appears to be over, since they have turned buyers in the last few days. "The near-term outlook for FPI looks much more positive now. Even though Indian valuation continues to be relatively high, the recent market correction has made valuations a bit more reasonable than earlier," Vijayakumar said. Moreover, going ahead, FPIs may not turn aggressive sellers due to domestic factors like an impressive turnaround in ...