Foreign portfolio investors (REITs) have injected a net ??7,245 crore in Indian capital markets in August so far amid positive sentiments due to improving macroeconomic environment.
The gradual increase in the amount of net inflows indicates that investors are slowly abandoning their cautious stance and gaining conviction in Indian markets, said Himanshu Srivastava, associate director – manager research, Morningstar India.
According to data from custodians, ??5,001 crore was invested in equities and ??2,244 crore in the segment of debt by foreign investors between August 2 and August 20. This brought the total net investment to ??7,245 crores.
Regarding other emerging markets, Shrikant Chouhan, executive vice president of technical research on equities at Kotak Securities, noted that flows in South Korea, Taiwan and Thailand continue to be negative to the tune of 5,269 million. USD, 855 million USD and 341 million USD, respectively. .
On the other hand, Indonesia reported FPI inflows of $ 156 million.
According to Srivastava, Indian stock markets offer an attractive investment proposition from a long-term perspective. With the improving macroeconomic environment and positive outlook, REITs are focusing their attention on Indian equities.
However, he added that the short-term risks continue to persist.
In addition, the weaker chances of further rate cuts due to global inflation continue to add to their concerns.
“With the Fed’s final minutes indicating the possibility of a decline by the end of the year, markets have become a bit volatile. With the dollar index at around 93.57, REITs should be in standby and monitoring mode in the future, “said VK Vijayakumar. , Chief Investment Strategist at Geojit Financial Services.
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