FPI has invested Rs 3,900 crore in shares so far in January
Amid uncertainty over the interest rate outlook, foreign portfolio investors (FPIs) have adopted a cautious approach and pumped around Rs 3,900 crore into Indian stock markets in the first two weeks of January. Earlier, in the entire month of December, FPIs had injected Rs 66,134 crore into the Indian stock markets. Whereas in November, FPI had invested Rs 9,000 crore in shares.
According to depository data, foreign portfolio investors have invested a net of Rs 3,864 crore in Indian stocks so far this month (till January 12). Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Advisor India, said that the current investment trend of investors is due to profit booking because the Indian stock market is currently at its all-time high. Apart from this, due to uncertainty regarding the interest rate scenario, FPIs are also on the sidelines and they are waiting for some indicators before making any investment decision.
He said that due to ongoing geopolitical tensions, FPIs are being cautious while making investment decisions. Meanwhile, data shows that FPIs remain attracted to the debt or bond market. During the period under review, FPI invested Rs 7,912 crore in the bond market. Earlier, FPIs had made a net investment of Rs 18,302 crore in the bond market in December, Rs 14,860 crore in November, and Rs 6,381 crore in October. Also, read this.