For the October month till date, FPIs have been net buyers in Indian markets and infused a sum of Rs 17,749 crore as there have been a host of positives to cheer investors including expansion in industrial and commercial activities, easing coronavirus risk, better September quarterly results.
As per the depositories' data, a total of Rs. 15642 crore was put in the equity segment while debt saw an inflow to the tune of Rs. 2,107 crore during October 1-23. In the previous month, FPIs offloaded its positions worth Rs. 3419 crore in the Indian market
PTI report further quoted the observations of Harsh Jain- co-founder and COO at Groww that Indian markets have been seeing inflows from FPIs at a time when other emerging markets including the likes of Brazil, South Africa, Taiwan, and Thailand have been subjected to net outflows in the year 2020. This is suggestive of the fact that FPIs view Indian markets to perform well in the immediate as well as long term.
Also he pointed that FPIs have been on a stake hiking spree in Reliance while decreasing their holding in energy sector scrips.
Risk-off sentiment among investors may prevail due to the upcoming US Presidential elections, doubts over the US stimulus and the rising corona cases in both the US and Europe, added Himanshu Srivastava, associate director - manager research, Morningstar India. Also, he said that Indian capital market based on global scenario as well as FPIs changing views can see bouts of FPI inflows and outflows.
Also, continuity of accommodative stance by global central banks will drive foreign investments into emerging markets including India, he added.