Continuing with purchases in the Indian markets, foreign portfolio investors (FPI) injected a net sum of Rs 7.605 crore in September so far.
According to depositary data, foreign investors invested Rs 4,385 crore in equities and Rs 3,220 crore in the debt segment during September 1-9.
The FPI funding in September comes after buying the sum of Rs 16,459 crore in August, with a record investment of Rs 14,376.2 crore in the bond market.
For the continued flow of foreign money into the debt segment, Himanshu Srivastava, associate director (research) at Morningstar India, said: “The stability in the Indian currency and the rising bond spreads between the US and the India made Indian debt better placed against risk. reward, which would have attracted the attention of investors, leading to rather sudden and large inflows. ”However, he added that investing in Indian stocks has been volatile of late.
Last week, US Fed Chairman Jerome Powell’s speech at the ‘Jackson-Hole’ event, where he took a wait-and-see approach and highlighted that the central bank is in no rush to raise rates , garnered a positive reaction from investors and increased its Appetite for riskier assets, Srivastava noted.
“FPIs would have chosen to be part of the ongoing rally in the Indian equity markets rather than get lost. However, the setting was slightly different this week.
“The uncertainty surrounding the timeline to reduce QE (quantitative easing) would have prevented them from going overboard or generating substantial investments in Indian equities,” he added.
Going forward, Shrikant Chouhan, executive vice president (equity technical research) at Kotak Securities, said that FPI flows are expected to remain volatile during September-December 2021 as global investment remains a challenge.
Investors are focusing on sustaining growth in developed economies. As a result, they are expected to focus on emerging markets for diversification and global investors cannot ignore India given growth opportunities, he further said.
(This story has not been edited by Business Standard staff and is automatically generated from a syndicated feed.)