Mumbai: The Foreign Portfolios Investors (FPIs) purchased bought Indian equities worth Rs 1,433 crore thus far in November. The decline in US treasury bond yields and crude oil prices influenced FPIs. FPIs were selling Indian equities in the last two and a half months.
‘The ongoing festive season in India has been seen as a contributing factor to the renewed interest of FPIs in the Indian market. Alongside this, a decrease in US Treasury bond yields and a decline in crude oil prices alleviated some of the pressures that prompted the sell-off earlier,’ said Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Adviser India.
Also Read: Country releases 4000 prisoners to ease jail crowding
FPIs sold Indian equities worth Rs 24,548 crore in October and Rs 14,767 crore in September. Prior to the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and invested Rs 1.74 lakh crore during the period. The prolonged sell-off by FPIs, which began in early September, was influenced by several factors — the uncertain trajectory of US interest rates, increased yields on US treasury bonds, the impact of higher crude oil prices, and the intensification of geopolitical tensions arising from the conflict between Israel and Hamas.
FPIs also invested Rs 12,330 crore in debt market in November. They invested Rs 6,381 crore in October. With this, the total investment by FPIs in equity has reached Rs 97,405 crore and over Rs 47,800 crore in the debt market this year so far.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
Post Your Comments