FPIs invest Rs 5,156 cr in Indian equities in Jan so far

By: |
January 10, 2021 4:22 PM

S Ranganathan, head of research at LKP Securities, said, FPI inflow into Indian markets is mainly due to "prospects of a good third-quarter earnings expectations coupled with hopes of a reformist budget".

FPIs have been strong buyers in the Indian market since 10,700 levels and have seen an upside of 35%, which, according to experts, could have triggered profit booking.FPIs have been strong buyers in the Indian market since 10,700 levels and have seen an upside of 35%, which, according to experts, could have triggered profit booking.

Foreign portfolio investors (FPIs) have pumped Rs 5,156 crore into Indian capital markets in the first six trading sessions this year amid expectations of strong third-quarter earnings and a reformist budget. As per depositories data, FPIs invested a net Rs 4,819 crore in equities and Rs 337 crore in debt segment between January 1 and 8.
This took the total net investment to Rs 5,156 crore during the period under review.

S Ranganathan, head of research at LKP Securities, said, FPI inflow into Indian markets is mainly due to “prospects of a good third-quarter earnings expectations coupled with hopes of a reformist budget”.

Besides, India’s low number of COVID-19 cases compared to other countries is also a major reason why investments are flowing into India, as many other countries have restarted lockdowns in the wake of rising cases, Harsh Jain, co-founder and COO at Groww, said.

Quantum of investment received by India in 2020 is among the highest by emerging markets, while most emerging markets actually saw outflows, he said.

“India has emerged as an attractive investment destination as hopes of a strong economic recovery have risen after seeing the recovery in the past few quarters,” Jain added.

VK Vijaykumar, chief investment strategist at Geojit Financial Services, said India, China, Russia and South Korea are the favourite destinations of the FPIs. “FPIs have been buying the market leaders in IT and private sector banks and select blue chips across sectors,” he said.

Going forward, FPIs are likely to remain strong in 2021 too, as liquidity infusion by the leading central banks is expected to sustain in the coming months too, Vijaykumar said.

Rusmik Oza, executive vice president, Head of Fundamental Research at Kotak Securities, noted that quantum of FPI flows was less in January so far.

“There could have been some held back of FII flows due to the Georgia state elections. Now, since that event risk is over FPI flows could resume in a bigger way from next week,” he said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Indian export to benefit from strong sugar prices globally
2Ethereum now more valuable than Visa, JPMorgan Chase; Bitcoin-rival among top five financial services
3Govt should allow cryptocurrencies, says former finance secy SC Garg