INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Foreign investors have pumped in over Rs 3,000 crore in the Indian capital markets in the last five trading sessions after
pulling out hefty funds during April-June.
The recent infusion comes following a net outflow of more than Rs 61,000 crore in the last three
Prior to that, they had poured in Rs 2,662 crore in March.
According to depositories data, foreign portfolio investors (FPIs) pumped in Rs
2,235 crore in the equity markets during July 2-6
Besides, they put in Rs 892 crore in the debt market, taking the total to Rs 3,127 crore.
"Equity markets are witnessing some value buying
after a sharp correction in mid and small cap indices that have corrected by almost 20 per cent in 2018
The recent interest among FPIs is basically bottom fishing in beaten down stocks," said Rajeev Srivastava, head of retail broking at
Reliance Securities.
Overall, it has been a bumpy ride this year as far as FPI flows are concerned and the fluctuations in net flows at
times have been massive, thus making the entire proposition unpredictable.
So far this year, overseas investors have withdrawn Rs 44,737
crore from the capital markets
This includes Rs 40,541 crore from the debt and remaining Rs 4,196 crore from equities.
In January, FPIs invested Rs 22,272 crore in the
However, in February they were net sellers to the tune of Rs 11,674 crore
The following month, they again turned positive and put in Rs 2,662 crore in March.
However, they took bearish stance in April and the
momentum continued till June
During these three months, overseas investors withdrew over Rs 61,000 crore.
"Undoubtedly, this year has been extremely unfavourable from
This could be attributed to multiple factors
There has been significant outflow from India focussed offshore funds and exchange traded funds (ETFs) which contributes a significant
portion towards FPI flow," Morningstar India Senior Analyst Manager Research Himanshu Srivastava said.
Moreover, he said India is currently
fraught with higher crude prices and depreciating Indian currency.
