New Delhi: Foreign Portfolio Investors (FPI) back out from the Indian Market with Rs 2,867 crore in July, prompted by profit booking from the Indian equities surge.
As per the depositories data, the offshore investors have pulled out a total net outflow of Rs 2,867 crore, a compromise of net Rs 2,210 crore from the equities segment and Rs 657 crore from the debt segment between July 01-10, 2020.
FPIs pulled out action has done after an investment of Rs 24,053 crore in the Indian domestic market in June.
FPIs Withdraw From Indian Stock Market
Kotak executive, Vice President, head of fundamental research – Rusmik Oza said Foreign Portfolio Investors had been net investors in the Indian market in the month of June as the valuation has gained much after the surge in Indian equities and discouraging Q4 FY2020 earning.
Morningstar India, Associate Director – manager research – Himanshu Srivastava said that after the prevailing Indian equity market buyers in June, FPIs had lost the steam with their Indian equities investment in July.
“FPIs could do this whole investment to book intermittent profits in the surging Indian equity market in June and July,” he said.
What Are the Expert’s Thoughts?
“The equity inflows are anticipated to follow the trend as long term, vigorous fundamentals and potential of growth overweigh short term uncertainty and volatility,” Harsh Jain, co-founder and COO, Groww, said.
“With the ongoing market situation, the Indian market is a very good investment option with a long term investment horizon considered for FPIs as once the vaccine for Covid-19 develops and the market picks up the steam. With increased liquidity in global markets, many would be investing in emerging markets, with India too getting advantage from the same,” he added.
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