Foreign portfolio investors (FPIs) bought Indian stocks aggressively in the first two weeks of August. FPIs again Indian stock markets after a long gap last month(Share Market)Purchased in Foreign investors eased inflation concerns in the first two weeks of August, adding Rs. 22,452 crore was poured. According to depository data, at the beginning of July, FPIs in equity were around Rs. 5,000 crore had been invested. Foreign portfolio investors (FPIs) have shown confidence in Indian stocks in the first two weeks of August. After a long gap, FPIs are turning to the Indian stock market again.
Invested in July after selling for nine months
FPIs became buyers for the first time in July after nine consecutive months of withdrawals. He had been selling continuously since October last year. From October 2021 to June 2022, foreign portfolio investors can invest Rs. 2.46 lakh crore worth of shares were sold.
Srikant Chauhan, equity research (retail) at Kotak Securities, said emerging markets will see further improvement in FPI flows due to easing inflation concerns and tightening monetary stance by central banks. According to official data, the retail inflation rate has decreased to 6.71 percent in July.
However, it is still above RBI’s satisfactory level of 6 percent. A fall in food prices has moderated retail inflation. Inflation in the US, on the other hand, fell to 8.5 percent in June from a 40-year high. This suggests that the US central bank, the Federal Reserve, will not tighten its monetary stance further.
Experts guess
Vijay Singhania, chairman of TradeSmart, said foreign fund flows will continue with energy prices remaining low and some startling news on the war front. According to depository data, between August 1 and 12, FPIs had net inflows of Rs. 22,452 crore has been invested. Apart from this, FPIs during the period under review in the debt or bond market have invested Rs. 1,747 crore net investment.
Let us tell you that the market capitalization (market cap) of six of the top 10 companies in the Sensex last week was collectively Rs. 1,56,247.35 crore has increased. Meanwhile, Reliance Industries has benefited the most.
Foreign portfolio investors (FPIs) have shown confidence in Indian stocks in the first two weeks of August. After a long gap, FPIs are turning to the Indian stock market again
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