Foreign Investors Pour Rs 15,420 Crore into Indian Market This Week
Foreign portfolio investors have invested Rs 15,420 crore in the Indian equity market this week, according to data from the National Securities Depository. This brings the total net investment by foreign portfolio investors (FPI) to Rs 30,772 crore so far in July, indicating strong buying activity.
So far this year, foreign investors have bought equities worth Rs 1,30,138 crore. Shrikant Chouhan, Head of Equity Research at Kotak Securities, mentioned that FPI flows are expected to remain volatile. He noted that markets in India, Brazil, Indonesia, Malaysia, Philippines, and South Korea saw inflows, while Taiwan, Thailand, and Vietnam experienced outflows.
Internationally, foreign investors injected around USD 585 million in Brazil, USD 300 million in Indonesia, USD 324 million in Malaysia, and USD 2085 million in South Korea this week. Conversely, Taiwan saw an outflow of USD 5325 million, and Vietnam witnessed a selling of USD 278 million in foreign investments.
Market experts suggest that foreign investors are investing in Indian markets amid a weakening dollar and bond yields. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that FPIs were buyers in sectors like autos, capital goods, healthcare, IT, telecom, and oil and gas during the fortnight ending July 15. However, there was a lack of buying in financial services, explaining the sector’s poor performance in July so far.
Foreign institutional investors were sellers in January, April, and May, cumulatively selling equities worth around Rs 60,000 crore. However, they were buyers in February, March, and June, with cumulative purchases amounting to Rs 63,200 crore.
Doubts Revealed
Foreign Investors -: Foreign investors are people or companies from other countries who put their money into businesses or markets in India.
Rs 15,420 Crore -: Rs 15,420 crore is a large amount of money. One crore is equal to 10 million, so 15,420 crore is 154,200 million rupees.
Indian equity market -: The Indian equity market is where people buy and sell shares of companies in India. It’s like a big marketplace for company ownership.
Foreign portfolio investors -: Foreign portfolio investors are people or companies from other countries who invest in stocks, bonds, or other financial assets in India.
Shrikant Chouhan -: Shrikant Chouhan is a person who works at Kotak Securities, a company that helps people buy and sell stocks and other financial products.
Kotak Securities -: Kotak Securities is a company in India that helps people buy and sell stocks and other financial products.
Inflows -: Inflows mean money coming into a country or market. In this case, it means foreign investors are putting money into the Indian market.
Outflows -: Outflows mean money going out of a country or market. In this case, it means foreign investors are taking their money out of markets like Taiwan, Thailand, and Vietnam.
V K Vijayakumar -: V K Vijayakumar is a person who works at Geojit Financial Services, a company that helps people manage their money and investments.
Geojit Financial Services -: Geojit Financial Services is a company in India that helps people manage their money and investments.
Weakening dollar -: A weakening dollar means that the value of the US dollar is going down compared to other currencies.
Bond yields -: Bond yields are the returns or interest that investors get from bonds, which are like loans given to companies or governments.
