$830 million in Indian markets by Foreign Portfolio Investors |
For the foreign investors, May is a month they sell and go on a vacation. But this time, though late, they found May to be a month to come back to the Indian market. After the exit polls predicted the majority for BJP led democratic alliance, the foreign inflows in domestic equity market resumed on last Monday. Last week, foreign portfolio investors (FPIs) were net buyers on all but one day, pumping in 844.7 million dollars. However, FPIs are net sellers by 293.6 million dollars in past month. After domestic markets witnessed the heavy inflows of around 10 billion dollars in previous three months, FPI resumed the selling in the first half of May. Just before exit polls, having the uncertainty of which political alliance may form government, FPI started selling. But things changed as soon as the elections got over. A stable government at the Centre is expected to encourage FPI inflows into Indian markets. However, some analysts feel that FPIs have turned frugal in the recent time and the rally in equity market may depend more on domestic flows than foreign investment. This though, does not deter analysts` expectation from FPIs to step up investment in Indian equities in the coming days.
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