FPI flow touches $1.7 billion during July-Sept quarter

Mumbai | Updated: Oct 01, 2016 6:56 AM

Foreign portfolio investors (FPIs) have snapped up stocks worth $ 7.02 billion in 2016 so far, twice the amount that flowed in during the corresponding period of 2015.

Foreign investors have now shopped for stocks in every month this year except January and February, buying close to $ 4 billion in March.(Reuters)Foreign investors have now shopped for stocks in every month this year except January and February, buying close to $ 4 billion in March.(Reuters)

Foreign portfolio investors (FPIs) have snapped up stocks worth $ 7.02 billion in 2016 so far, twice the amount that flowed in during the corresponding period of 2015. The tab of $ 1.7 billion in September is the highest in the last six quarters.

Between January and now, the Sensex has risen 6.7% closing Friday’s session at 27,865.96.

Foreign investors have now shopped for stocks in every month this year except January and February, buying close to $ 4 billion in March. However, markets such as Taiwan and South Korea have attracted more foreign flows than India this year. Taiwan has attracted the highest inflows of $14.3 billion followed by South Korea which has pulled in $ 9.4 billion. Indonesia, however, hasn’t been a big destination with inflows of $2.6 billion moving into its equity markets in the year so far.

During the period from January to September Taiwan’s benchmark index rose 9.9% and South Korea’s Kospi rose by 4.2%.

Consensus estimates peg the one-year forward trading multiple for the benchmark Sensex at 15.8 times, somewhat more expensive than Taiwan’s at 13.8 times. Korea is far cheaper, trading at 10.5 times, one-year forward estimated earnings.

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