Increased Attractiveness of Foreign Investors to The Indian Stock Market; Made an Investment of Rs 5,600 Crore
Mumbai : Foreign portfolio investors (FPIs) have infused around Rs 5,600 crore into the Indian stock markets so far this month. The expected increase in consumer spending in the festive season is a big reason behind this. Also, the strengthening of fundamentals vis–vis other emerging markets has increased the attractiveness of FPIs.
Earlier in August, foreign investors had invested Rs 51,200 crore in Indian equities and about Rs 5,000 crore in July. After nearly nine months in July, FPIs became net investors. Since then his attitude has continued. The process of FPI exit from the Indian markets started in October last year. From October 2021 to June 2022, FPIs sold shares worth Rs 2.46 lakh crore.
Bond Yield Threats
According to the depository data, during September 1-9, FPIs have infused a net Rs 5,593 crore into the Indian stock exchanges. VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services said that FPI buying will continue in the Indian markets. If the bond yield in the US rises or the dollar index moves above 110, their trend could be affected.
Indian stock market boom
The Indian stock market saw a huge rally last week, due to which the combined market valuation of seven of the country’s 10 largest companies by market valuation has increased by Rs 1.33 lakh crore. During this period, BSE’s main index Sensex gained 989 points or 1.68 percent. Despite weak global cues, the Indian stock market has outperformed other markets in the world during the past week.
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