FPIs invest Rs 1,997 crore so far in October
Volatility in the global markets as well as global slowdown may impact foreign flows moving into domestic market
With a total investment of Rs 1,997 crore, Foreign portfolio investors (FPIs) remained net buyers so far in October. As per depositories data, FPIs invested Rs 1,530 crore in equities and Rs 467 crore into the debt segment between October 1-8.
FPIs have been net buyers for two consecutive months and have invested Rs 26,517 crore in September and Rs 16,459 crore in August.
Of late, FPIs have been bullish on the IT sector, which has witnessed increasing flows since earnings visibility is high in the segment. On the contrary, banking sector, which is struggling with poor credit growth and rising asset quality concerns has witnessed outflows.
With markets hovering around all-time high levels, profit-booking by FPIs from time to time cannot be ruled out and volatility in flows is likely to continue.
Volatility in the global markets as well as global slowdown may impact foreign flows moving into domestic market. Further, any direction by US Fed towards tapering of the stimulus measures would turn FPI flows into emerging markets volatile.