For­eign in­vestors put `5,300 crore this month so far

DNA (Daily News & Analysis) Mumbai Edition - - FRONT PAGE - —PTI

New Delhi: For­eign port­fo­lio in­vestors (FPI) have in­fused close to Rs 5,300 crore in the In­dian eq­uity mar­kets in the last six trad­ing ses­sions, mainly on ex­pec­ta­tions of higher eco­nomic growth.

This comes fol­low­ing a pull­out of Rs 5,264 crore by for­eign port­fo­lio in­vestors FPIS in Jan­uary. Prior to that, they had put in Rs 5,884 crore in the stock mar­kets dur­ing Novem­ber-de­cem­ber 2018.

Ac­cord­ing to data avail­able with de­pos­i­to­ries, FPIS put in a net amount of Rs 5,273 crore in equities dur­ing Fe­bru­ary 1-8. How­ever, they pulled out a net sum of Rs 2,795 crore from the debt mar­ket dur­ing the pe­riod un­der re­view.

Af­ter turn­ing net sell­ers in Jan­uary, for­eign port­fo­lio in­vestors have turned net buy­ers in Fe­bru­ary so far. Though it is a wel­come change, it is too early in the month to con­clude as to where the flows are headed, an­a­lysts said.

How­ever, the re­cent net in­flows could be some­what at­trib­uted to the pos­i­tive view on the Bud­get and govern­ment re­solve in work­ing to­wards bring­ing eco­nomic growth, said Hi­man­shu Sri­vas­tava, se­nior an­a­lyst man­ager re­search, Morn­ingstar In­vest­ment Ad­viser In­dia.

“De­spite the re­cent net in­flows, I be­lieve the broader ap­proach would con­tinue to be cau­tious and FPIS would con­tinue to adopt a wait and watch ap­proach. The fo­cus would con­tinue to be on the coun­try’s progress on the eco­nomic growth front as well as the gen­eral elec­tions,” he added.

Other fac­tors such as move­ment in crude prices and cur­rency, which would have a bear­ing on the coun­try’s macro-en­vi­ron­ment, and wor­ries over global trade war will con­tinue to guide the di­rec­tion of FPI flows, he added.

The stance of the US Fed­eral Re­serve to­wards in­ter­est rates will also play a sig­nif­i­cant role in for­eign fund flows.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.