Sept of FPI. Huge investment of 6. 6.3 billion in the quarter
(Commercial Representative) Mumbai, Ta. Thursday, November 19, 2020
Foreign Investors - Foreign Portfolio Investors Continue Rising in Indian Stock Markets
The attractiveness of further liberalization in the economy and the resumption of business activities along with attractive valuations have boosted the funds' investment in stocks, the Morningstar report said.
Foreign portfolio investors posted a net inflow of 2.7 billion in the quarter ended June 2020, compared to a net inflow of ૬ 4.5 billion in the quarter ending March 2020. In addition to these inflows, the value of FPI investments in Indian stocks has also increased due to the huge net inflows in the quarter under review.
Along with this, the performance of Indian stock markets has remained strong. FPI investments in Indian stocks stood at 50 billion in the quarter ended September 2020, up from ૩૪૪ 6 billion in the previous quarter. Which shows an increase of 21%.
In addition, the share of foreign portfolio investors (FPIs) in the Indian equity market capitalization has increased to 21.5 per cent in the September 2020 quarter from 17.5 per cent in the June 2020 quarter. Interestingly, the share of FPIs in the Indian equity market has risen from a record high of 20.8 per cent in March 2016 to a record high of 31.5 per cent.
Net FPI purchases for the quarter ended September 2020 stood at 2.7 billion, up from 4.5 billion in the previous quarter. Foreign investors had started the September quarter cautiously as cowardly cases began to rise and the situation remained precarious due to new lockdowns in many states in July. Along with this there was also the concern of growth in the local economy.
Of course, FPIs then sidelined these risk factors and adopted a massive investment strategy in Indian stocks. Which was accompanied by a massive increase in global liquidity as well as accelerating going forward in the quarter.
August was the best month for foreign funds, with FPIs having the highest net monthly investment since October 2010 at 2.7 billion. In September, however, FPIs were selling net worth of શે 1.1 billion in Indian stocks. The investment was seen as a result of concerns over the country's economic growth and tensions on the border between India and China.
Comments
Post a Comment