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By Malvika Gurung
Investing.com — Foreign investors have made a noteworthy investment in Indian equities, totaling Rs 37,316 crore from May 2 to May 26, 2023, marking the highest level of investment in six months. FPIs invested a net amount of Rs 36,239 crore in domestic equities during the month of November 2022, as per NSDL data.
Experts noted that the recent surge in FPI investments is primarily due to strong domestic macroeconomic fundamentals, reasonable valuation of Indian stocks and a good earnings season, among other factors.
In the first two months of the calendar year 2023, FPIs debited more than Rs 34,000 crore. They infused a total of Rs 7,936 crore in the month of March and another Rs 11,630 crore in April 2023.
The sustained buying by FPIs has lifted the benchmark index by 2.4% in the month of May.
In a note sent to Investing.com, Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services states that India is among the best performing markets like Japan, Taiwan, South Korea and Brazil while other markets, both developed and emerging, are struggling.
FPIs have been buying across all sectors, while massive buying has been witnessed in financial services, particularly banking. They have also invested in automobiles, capital goods, health care, Oil & gas and telecom sectors.
A clear indication of interest rates peaking in India have led to a favourable macro setting, raising hopes of FPIs to continue supporting the market.
“With the upcoming Q4 GDP data, it is anticipated that India’s FY23 GDP will marginally surpass the earlier projected 7.0% growth rate. Additionally, the expectation of a normal monsoon and consistent FII buying further boosted confidence among domestic investors,” said Vinod Nair of Geojit Financial Services.
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