Foreign Investors Return to Indian Stock Market
From August 19-23, foreign investors made a notable return to the Indian stock market, purchasing equities worth Rs 4,897.16 crore, according to the National Securities Depository Limited (NSDL). This is a significant change from the previous week (August 12-17), when they sold Rs 7,769.73 crore worth of equities.
Despite this week’s positive inflow, the overall net investment by foreign investors in August remains negative, with a total of Rs 16,305 crore sold so far this month. This highlights the volatility in foreign investment patterns during August.
Domestic investors have played a crucial role in supporting the Indian stock market. According to the National Stock Exchange (NSE), domestic investors have purchased equities worth Rs 47,080.38 crore in August, providing stability amid fluctuating foreign investments.
Ajay Bagga, a Banking and Market Expert, emphasized the importance of fostering an environment that encourages both domestic and foreign investments to sustain growth and stability in the Indian stock market. He noted that India’s share in the MSCI EM Index has increased from 6.6% in December 2012 to over 20% in August 2024.
In July, foreign investors were net buyers, with investments reaching Rs 32,365 crore, continuing the strong interest seen in June when they purchased Rs 26,565 crore worth of Indian stocks.
Doubts Revealed
Foreign Investors -: Foreign investors are people or companies from other countries who invest money in India’s stock market.
Indian Stock Market -: The Indian stock market is a place where people buy and sell shares of companies in India. It’s like a big marketplace for trading company ownership.
Rs 4,897.16 Crore -: Rs 4,897.16 crore is a large amount of money. One crore is equal to 10 million rupees, so this is 4,897.16 times 10 million rupees.
Equities -: Equities are shares of a company that people can buy. When you own equities, you own a part of that company.
Net Investment -: Net investment is the total amount of money invested after subtracting the money that was taken out. If more money is taken out than put in, the net investment is negative.
Domestic Investors -: Domestic investors are people or companies from India who invest money in the Indian stock market.
Stability -: Stability means things are steady and not changing too much. In this context, it means the stock market is not going up and down a lot.
