FPIs net buyers at ₹21,875 cr so far in Sep, positive on long-term outlook

According to data from depositories, FPIs pumped in ₹13,536 crore into equities and ₹8,339 crore into the debt segment during September 1-23, taking the total net investment to ₹21,875 crore.

FPIs were net buyers at ₹16,459 crore in August.

“Rally in the Indian equity markets, positive long-term outlook, the expectation of economic rebound and improvement in corporate earnings has led foreign investors to re-invest in Indian equities,” said Himanshu Srivastava, associate director (research), Morningstar India.

Besides, he added that the turmoil in China has also benefitted India, making it an attractive investment destination among foreign investors from a long-term perspective.

However, higher valuations and US Fed signalling reversing of pandemic stimulus programmes in November did limit the flow of assets to some extent, he noted.

“The renewed FPI interest in India is partly because of Nifty’s impressive outperformance vis-a-vis MSCI World Index and MSCI EM Index this year,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

With respect to other emerging markets, Shrikant Chouhan, executive vice-president (equity technical research) at Kotak Securities, said Taiwan reported a total FPI inflow of USD 1,482 million.

FPI Inflows in South Korea, Thailand, Indonesia and the Philippines during the period under review stood at USD 1,223 million, USD 358 million, USD 268 million and USD 38 million, respectively, he added.

“FPI flows are expected to remain volatile in the emerging markets, once the US Federal Reserve increase the rate. After the rate hike, FPIs will start exiting emerging markets, as they considered it is riskier compare to the developed economies,” Chouhan said. 

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