‘By P. Sarojini’
New Delhi (CWBN)_ FPIs – Foreign Portfolio Investors have turned positive on Indian markets and invested INR 1086 crore on a net basis so far in the month of October, following the most encouraging factors like improved GST collection, acceleration in economic activity and positive global cues.
According to the data, a net amount of INR 5,245 crore was invested by foreign investors into equities and a net amount of INR 4,159 crore was withdrawn from the debt market in October 1-9.
Harsh Jain, the co- founder and COO at Groww, in his statement said that both the domestic and global factors directly contributed to the total net inflow in October. This sums up to total inflow of INR 1086 crore in October. In September, FPIs were net sellers at INR 3419 crore.
Jain said “Better than expected Q2 (earnings) performance, rising GST collection and a general opening up of the economy are helping India in becoming an attractive investment destination”. He added that the global markets are performing at pre-COVID 19 levels.
Rusmik Oza, Executive Vice President, head of fundamental research – PCG, Kotak Securities Ltd, stated that some of the Asian markets such as Japan, S Korea and Taiwan also got positive FPI flows this week. The reversal of INR Vs USD from 74 to 73.1 and correction in the dollar index have been supportive for FPI flows into India.
Himanshu Srivastava, Associate Director – Manager Research, Morningstar India said in his statement that, on moving forward, continuation of accommodative stance by global central banks may ensure flow of foreign investments into emerging markets including India.
Srivastava added that in terms of global front, US Presidential Election, rising Covid-19 infections and tension between US and China could determine the FPI flows in the future.
