Foreign Portfolio Investors (FPIs) pumped just ₹ 986 billion net into Indian stocks in August as caution among foreign investors continued.

According to data from custodians, FPIs bought shares worth ₹ 986 billion between August 2 and August 27 and invested ₹ 13,494 billion in debt.

“The trend of foreign inflows into Indian equity markets is not encouraging since the US Federal Reserve announced a tightening of its monetary policy earlier than originally forecast,” said Himanshu Srivastava, Associate Director (Manager Research), Morningstar India.

Despite signs of economic recovery, the easing of lockdowns in various states, the opening up of businesses, the revival of the vaccination campaign, record highs in the market and regulatory restrictions in China affecting growth, the FPIs have been cautious about investing in India Stock markets. Prospects, he added.

All other emerging markets except India saw positive inflows, said Shrikant Chouhan, executive vice president (equity tech research) at Kotak Securities.

Taiwan, Korea, Indonesia, and the Philippines reported inflows of $ 184 million, $ 166 million, $ 125 million and $ 23 million, respectively.

“The future of the FPI is likely to be influenced by the Fed comment expected tonight. A restrictive Fed could shake the markets. In any case, it is unlikely that you will tie up a lot of fresh money on these exaggerated valuations, ”said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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