Overseas investors infused a net of Rs 986 crore in Indian equities during the month of August, as prudence continued to persist among them.
Foreign Portfolio Investors (FPIs) purchased equities worth Rs 986 crore and pumped in Rs 13,494 crore in the debt segment between August 2-27, as per data the depositories data. The investment translated into a total net investment of Rs 14,480 crore. The FPIs were net sellers at Rs 7,273 crore in the month of July.
Also Read: FPIs withdraw over Rs 6,000 cr from Indian equities so far this fiscal
Despite the signs of economic recovery, easing of lockdown curbs across several states, pick up in vaccination drive, opening up of businesses, market touching all-time highs and regulatory clampdowns in China denting its growth outlook, there is cautiousness among the foreign investors towards investing in Indian equity markets, Himanshu Srivastava, associate director (manager research), Morningstar India told PTI.
“The trend of foreign flows into the Indian equity markets have not been encouraging ever since US Fed indicated tightening of its monetary policy stance earlier than what was initially projected,” he added.
Other than India, all other emerging markets witnessed positive inflows, noted Shrikant Chouhan, executive vice-president (equity technical research) at Kotak Securities.
Also Read: FPIs pump in Rs 2,085 cr in Indian equities in first half of Aug
Taiwan, Korea, Indonesia and the Philippines reported inflows of $184 million, $166 million, $125 million and $23 million, respectively.
“FPI, going forward, is likely to be influenced by the US Fed commentary expected tonight. A hawkish Fed may rattle markets.
Anyway, they are unlikely to commit big fresh money at these stretched valuations,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
(With inputs from PTI.)