FPIs buoyed by Indian markets, invest Rs 41,330 crore in Aug so far

According to the depositories data, foreign portfolio investors (FPI) pumped in Rs 40,262 crore into equities and Rs 1,068 crore in the debt segment between August 3-21. Prior to this, FPIs were net buyers for two consecutive months. They invested Rs 3,301 crore in July and Rs 24,053 crore in June on net basis.

 According to Himanshu Srivastava, associate director manager research, Morningstar India, there has been excess liquidity available in the global markets with many major central banks pushing aggressive

 stimulus measures to combat the coronavirus pandemic and support their dwindling economies.

 “Also, the US is printing money constantly. The excess liquidity is finding its way into India as well as probably other emerging markets,” he added.

 Srivastava said FPIs have turned their focus towards emerging markets like India because these markets have been performing well and offer a good potential to generate better returns. On the domestic front, opening-up of the economy and resumption in business activities is a positive sign. In addition to that, Indian equities continue to be attractively valued thus drawing the attention of FPI, he said.

 Harsh Jain, co-founder and COO, Groww said “after investing in bluechip stocks, FPIs are now starting to pick mid-cap and small-cap stocks.” Amidst concerns over economy due to the pandemic, FPIs headed either towards gold or bluechip stocks that are more stable and have better capacity to deal with tough times.