FPI Investment: At present, foreign investors are liking the Indian market a lot. Domestic markets are growing faster than global markets. Foreign portfolio investors (FPIs) have poured Rs 6,139 crore into Indian stock markets so far in March. Indian stock market remains very attractive among FPIs due to strong economic growth, market strength, and falling US bond yields.
According to depository data, earlier in February he had invested Rs 1,539 crore in shares. At the same time, in January he had sold shares worth Rs 25,743 crore.
Why are foreign investors liking the Indian market?
Manoj Purohit, partner and leader of BDO India, has said that the trend of FPIs in March seems more positive as compared to the previous month. In the third quarter of the current financial year, the growth rate of Gross Domestic Product (GDP) has been better than expected at 8.4 percent. Apart from this, the performance of big companies in India has been quite good. Because of this, the Indian stock market remains attractive among FPIs.
What is the expert's opinion?
VK Vijayakumar, Chief Investment Strategist, at Geojit Financial Services, has said that FPIs are showing interest in the Indian market for three reasons. These include the strength of the market and the fall in bond yields in America, as well as better-than-expected GDP growth rate figures. Apart from shares, FPIs have invested Rs 1,025 crore in the loan or bond market during the period under review.
Investors are investing money in the loan market
Talking about the loan or bond market, FPIs have been investing money in the loan market for the last few months, influenced by the announcement of the inclusion of Indian Government bonds in the JP Morgan index. He had put Rs 22,419 crore in the bond market in February, Rs 19,836 crore in January, and Rs 18,302 crore in December.
Rs 43,280 crore deposited so far this year
Overall, so far this year, FPIs have withdrawn Rs 18,000 crore from the Indian stock market. During this period he has invested Rs 43,280 crore in the loan market.
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