FPIS PULL OUT ₹3,600 CRORE IN JUST 9 SES­SIONS

Hindustan Times (Noida) - - HTBUSINESS - Press Trust of In­dia feed­[email protected]

NEWDELHI:FOR­EIGN in­vestors have pulled out more than ₹3,600 crore from the In­dian eq­uity mar­kets in the last nine trad­ing ses­sions, adopt­ing a cau­tious stance to­wards the coun­try.

This comes fol­low­ing a cu­mu­la­tive net in­flow of ₹8,584 crore in the eq­uity mar­kets by For­eign Port­fo­lio In­vestors (FPIS) dur­ing Novem­ber and De­cem­ber. Ac­cord­ing to data avail­able with the de­pos­i­to­ries, FPIS with­drew a net amount of ₹3,677 crore from eq­ui­ties dur­ing Jan­uary 1-12. How­ever, they pumped in a net sum of ₹1,872 crore in the debt mar­kets dur­ing the pe­riod un­der re­view.

“While it may not be a good start for the year, its too early to draw any con­clu­sion. How­ever, at best what it in­di­cates is that FPIS are con­tin­u­ing with their cau­tious/wait and watch stance to­wards In­dia,” said Hi­man­shu Sri­vas­tava, se­nior an­a­lyst man­ager re­search, Morn­ingstar In­vest­ment Ad­viser In­dia. “Go­ing ahead, the fo­cus would be on the bud­get, coun­try’s progress on the eco­nomic growth front as well as gen­eral elec­tions. Other fac­tors such as move­ment in crude prices and cur­rency, which would have a bear­ing on the coun­try’s macroen­vi­ron­ment; and wor­ries over global trade war will con­tinue to guide the di­rec­tion of FPI flows,” he added. Harsh Jain, COO at Groww, an on­line MF in­vest­ment plat­form, said 2019 is likely to see a lot of volatil­ity be­cause of rate hikes and dol­lar in­sta­bil­ity, but the In­dian mar­kets may not be as volatile as de­vel­oped ones de­spite short-term po­lit­i­cal un­cer­tainty. “In­dia of­fers bet­ter in­vest­ment op­por­tu­ni­ties due to con­sis­tent growth, sup­port­ive global fac­tors and at­tract val­u­a­tions. We should ex­pect pos­i­tive in­flow in com­ing months,” he added.

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