As per depositories data, overseas investors invested Rs 11,287 crore into equities and Rs 5,018 crore in debt segment on a net basis between September 1-17.
During this period, the total net investment stood at Rs 16,305 crore.
In August, FPI investment stood at Rs 16,459 crore. Himanshu Srivastava, associate director – research, Morningstar India noted that investment in Indian equities has been volatile for sometime.
“However, continuing rally in the Indian stock markets would have been hard for FPIs to ignore and they would have chosen to be a part of it rather than missing out on it,” he said.
Also, India continues to be an important and competitive investment destination from the long-term perspective, Srivastava added.
FPIs have been showing interest in segments like hotels and travel since these segments have started to do well, as per V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He further said that some profit-booking is seen in segments like metals and insurance which had appreciated handsomely.
Shrikant Chouhan, executive vice president, equity technical research at Kotak Securities, said that all emerging markets have seen FPI inflows in Sep 2021 till date.
“Inflows in Taiwan, South Korea, Thailand, Indonesia and Philippines are positive to the tune of USD 2,597 million, USD 535 million, USD 290 million, USD 162 million and USD 71 million, respectively,” he added.
Chouhan said that FPI inflows into Indian equity markets may dwindle following quantitative easing tapering by the Federal Reserve.
“In general, rate hike by US Federal Reserve leads to FPIs exiting emerging markets such as India that are considered riskier than developed economies,” he said.
