FPIs shift focus back towards Indian mkts

New Delhi Foreign Portfolio InvestorsForeign Portfolio Investors (FPIs) have infused over Rs3,200 crore in Indian equities so far this month driven by uncertainty in the global markets, economic concerns in China, and stability of the domestic economy.

“Since the markets have rallied smartly during the last three months, some profit booking by FPIs would be rational and can be expected, “VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. With the global economic mood getting challenging due to slackening Chinese demand, any weakness in global equities could trigger wild gyrations in local shares and result in FPI flow turning choppy going ahead, Srikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) have put in a net sum of Rs3,272 crore in Indian equities from August 1-11. However, in the first week of August, FPIs took a breather and pulled out over Rs2,000 crore from equities.

“The uncertainty in the global markets and economic concerns in China again played a role in FPIs shifting their focus back toward Indian markets, which have been more resilient and stable,” Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, said. Also, better-than-expected earnings season for the June quarter lent positive support to the sentiments, he added.