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A likely tapering of rate hikes by US Fed is also seen taking the global sheen off the dollar and working in favour of emerging markets
Weaker dollar index, unwinding of offshore/onshore trades boost Indian currency
Foreign investors pumped in Rs 11,119 crore in the Indian equities in December, making it the second consecutive monthly inflow, despite increasing concerns over the re-emergence of Covid-19 cases in some parts of the world. However, foreign portfolio investors (FPIs) have turned cautious in recent days. The inflow in December was much lower compared to Rs 36,239 crore invested by FPIs in the month of November, data with the depositories showed. "Despite correction in the markets, increasing concerns over re-emergence of Covid in some parts of the world and recession worries in the US. FPIs remained net buyers in the Indian equity markets (in December)," Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, said. Also, in the midst of the ongoing uncertainty, many investors would have also chosen to book profits with Indian markets touching all-time high recently. Overall, FPIs have made a net withdrawal of Rs 1.21 lakh crore from the Indian equity markets
Revival in FPI flows, sharp recovery from year's lows in June helped calm investor nerves
According to experts, after remaining net sellers in August and September, Foreign Portfolio Investors (FPIs) are unlikely to be major sellers going forward
Conversely, Reliance Industries and Tata Consultancy Services saw the maximum FPI outflows at Rs 44,622 crore and Rs 17,838 crore, respectively
This came following a net outflow of just Rs 8 crore last month and Rs 7,624 crore in September, data with the depositories showed
Indian currency at 1-month high on FPI flows, weak dollar
After withdrawing funds in the last two months, foreign investors came back strongly in the first week of November and infused Rs 15,280 crore in Indian equities
The rupee settled at 82.44 per dollar on Friday versus 82.89 on Thursday
Cash market turnover fell almost 20% in October as rally take traders by surprise
Benchmark indices gained in 11 of the past 12 trading sessions
If not for inflows from India-dedicated funds, the FPI outflow tally in September would have crossed $2 billion.
'Domestic flows are showing signs of fatigue and may not enjoy the same momentum as in the recent past, especially in the backdrop of increasing global uncertainties'
Despite the positive flows, the allocation in IT at 10.7 per cent dropped for the fifth consecutive month and is the lowest since March 2018
Foreign investors have pumped in a little over Rs 51,200 crore into the Indian equity markets in August, making it the highest inflow in 20 months, amid improving risk sentiment and stabilisation in oil prices. This comes following a net investment of nearly Rs 5,000 crore by Foreign Portfolio Investors (FPIs) in July, data with depositories showed. FPIs had turned buyers for the first time in July after nine straight months of massive net outflows, which started in October last year. Between October 2021 till June 2022, they withdrew Rs 2.46 lakh crore from the Indian equity markets. India will continue to attract FPI flows this month too, although at a slower pace as compared to August, given continued rate hikes by the US Federal Reserve along with quantitative tightening, said Manish Jeloka, Co-head of Products and Solutions, Sanctum Wealth. Arpit Jain, Joint Managing Director at Arihant Capital Markets, said inflation, dollar prices and interest rate will dictate FPI ...
Foreign investors pump in Rs 51,000 cr; near-term flows to hinge on rupee, bond movements
The latest reading is well below this year's average of 20.7. Moreover, Monday's 8.8 per cent advance is only the 10th largest seen this year
As inflationary pressures unbind, corporate earnings growth will draw level, says Vinit Sambre, head-equities, DSP Investment Managers
The swing in favour of Indian equities comes after a brutal sell-off where FPIs sold equities worth Rs 2.56 trillion since October 2021