Good news for the economy, foreign investors have invested heavily in the stock market

pkbnewsNovember 27, 2022

Foreign portfolio investors (FPIs) have started coming back to the Indian stock market. So far in November, he has netted Rs 31,630 crore in the stock market.

Foreign portfolio investors (FPIs) have started coming back to the Indian stock market.

Foreign portfolio investors (FPIs) have started coming back to the Indian stock market. So far in November, he has netted Rs 31,630 crore in the stock market. Analysts say that after net selling in August and September, major selling by FPIs is unlikely. FPIs are investing in Indian stocks due to aggressive interest rate hikes, softening inflation, better than expected macro economic data from the US and the prospect of a fighting Indian economy.

Last month investors withdrew Rs

Between November 1 and 25, FPIs invested Rs 31,630 crore in shares, according to depository data. Earlier in October, he withdrew Rs 8 crore and in September Rs 7,624 crore. In early August, FPIs were net buyers of Rs 51,200 crore. At the same time, he bought shares worth Rs 5,000 crore in July. Earlier, from October 2021, FPIs were selling for nine consecutive months.

FPIs will remain volatile in the near term due to geopolitical concerns, said Shrikant Chauhan, head of equity research (retail) at Kotak Securities. So far this year, FPIs have withdrawn Rs 1.37 lakh crore from stocks.

What is the reason for the increase in investment?

Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said the increase in FPI inflows in November was due to the growth in the stock market, the Indian economy and the stabilization of the rupee. During the period under review, FPIs withdrew Rs 2,300 crore from the debt or bond market. Apart from India, FPI inflows were also positive in the Philippines, South Korea, Taiwan and Thailand markets this month.

Apart from this, we inform you that the direction of the stock market this week will be determined by macroeconomic data and global trends. Analysts have expressed such an opinion. He said monthly car sales figures will also come out during the week, which will help guide the market. Investors were attracted to the stock market last week due to favorable factors like buying by foreign institutional investors (FIIs) and fall in crude oil prices.