Foreign portfolio investors (FPI) have raised in a net revenue of about Rs 7,245 crore into the Indian capital markets in August 2021.
Consequently, a total of Rs 5,001 crore was invested in equities. Also, Rs 2,244 crore in the debt segment by the foreign investors between August 2-20. Hence, this took the total net investment to total of Rs 7,245 crore.
Himanshu Srivastava, the associate director and the manager research of Morningstar India stated that the increase in the net inflows shows that the investors are slowly reducing their alertness stand. They are gaining a higher judgements on the Indian capital markets.
With improving macroeconomic environment and positive outlook, FPIs are focusing their attention on Indian equitieshttps://t.co/iIcGQmOIC2
— Mint (@livemint) August 22, 2021
Foreign portfolio investment (FPI) is included of securities and financial assets held by the investors in foreign countries. FPI is one of the common ways to invest in foreign economy. In India, foreign portfolio investment is managed by the Securities and Exchange Board of India (SEBI). A foreign portfolio investment is a grouping of assets such as stocks, bonds, and cash equivalents. Portfolio investments are held by an investor or managed by financial professionals.
Shrikant Chouhan, the vice president of equity technical research at Kotak Securities, stated that the net flows in South Korea, Taiwan and Thailand continues to be negative. Consequently, at USD 5,269 million, USD 855 million and USD 341 million, respectively. According to Srivastava, the Indian equity markets offer an attractive investment from the long-term viewpoints. With the advancing in the macroeconomic environment, FPIs are focusing more on the Indian equities. However, Indonesia has reported FPI inflows of USD 156 million.
Also, V K Vijayakumar, the chief investment strategist at Geojit Financial Services said, “With the latest possibility of narrowing by year-end, markets have become a bit tensed. With the Dollar index at around 93.57, FPIs are likely on a wait & watch mode.”