Mumbai, June 29 (IANS) Political stability and sharp rebound in markets aided by aggressive retail buying have forced the foreign portfolio investors (FPIs) to turn buyers in India, market watchers said on Saturday.
FPIs have invested Rs 26,565 crore in equity in June which marks a reversal of their strategy of selling in the two preceding months.
According to market experts, FPIs have realised that selling in the most-performing market would be a wrong strategy.
“FPI buying can sustain provided there is no sharp up move in US bond yields,” they added.
First fortnight data in June from the National Securities Depository Limited (NSDL) shows FPIs buying in realty, telecom and financials.
FPIs were sellers in IT, metals and oil and gas and are likely to continue the buying trend in financials.
According to V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, India’s inclusion in the JP Morgan Bond Index is certainly positive.
“The debt inflows for 2024 so far stand at Rs 68,674 crore. In the long term, this will reduce the cost of borrowing for the government and reduce the cost of capital for corporates. This is positive for the economy and therefore for the equity market,” he noted.
FPIs are selling where valuations are high and buying where valuations are reasonable. Analysts believe that FPI inflows will remain constrained due to the high valuations currently commanded by the Indian equity market.
–IANS
na/svn
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
