FPI: In August, FPI has invested Rs 7,320 crore in equity. In July this figure was Rs 32,365 crore. At the same time, FPI invested Rs 11,366 crore in the debt market in August.
FPI: Foreign investors have invested heavily in the debt market in August. The reason for this is the rupee remaining stable till 2024. This information was given by market experts on Saturday. Most of the purchases by foreign portfolio investors (FPI) are being done in the ‘primary market’ category. At the same time, due to high valuations, foreign investors are selling in the cash market.
FPI invested ₹7,320 crore in August
According to the data of National Securities Depository Limited (NSDL), FPIs have invested Rs 7,320 crore in equity in August. This figure was Rs 32,365 crore in July. At the same time, FPIs invested Rs 11,366 crore in the debt market in August. With this, foreign investment of more than Rs 1 lakh crore has come in the debt market since the beginning of 2024.
Experts say that the reason for low investment by foreign investors in the equity market is high valuation. FPIs have opportunities to invest in other cheap markets of the world. However, FPIs are investing in some sectors like Healthcare and FMCG.
Vaibhav Porwal, co-founder of Deserve, says that the reason for more investment in debt funds is the inclusion of Indian bonds in the JP Morgan Emerging Bond Index. Vipul Bhowar, listed investment director of Waterfield Advisors, says that FPIs’ inclination towards the debt market can be seen in September as well. The reason for this is political stability, interest rate cuts by the Fed and market valuations.
Continuous rise since last one year
The Indian stock market has been witnessing a continuous rise since last one year. Nifty has given a return of 16% since the beginning of 2024 and more than 31% in the last one year. At the same time, Sensex has given a return of about 14% since the beginning of 2024 and 27% in one year.
