INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Foreign investors remained net buyers in December by investing Rs 2,613 crore in the domestic markets, mainly due to expectation
of a revival in corporate earning, quantitative easing by the US Fed and infusion of funds by central banks globally.According to the
depositories data, a net amount of Rs 6,301.96 crore was invested by foreign portfolio investors (FPI) into equities, while Rs 3,688.94 was
pulled out of the debt segment.
This resulted into a total net investment of Rs 2,613.02 crore between December 2-27.
"Despite challenges on
the economic front and policy roadblocks, FPIs continue to have faith in the Indian equity markets what has kept them hooked to the Indian
equity markets is expectation of a revival in corporate earning in the coming quarter, quantitative easing by US Fed and infusion of funds
by central banks globally," said Himanshu Srivastava, senior research analyst, manager research at Morningstar.
Barring January, July and
August, FPIs have been net buyers for rest of the months in 2019
This year, they have invested a net sum of Rs 73,276.63 crore in the Indian markets (both equity and debt).
"In 2019, FPIs remained bullish
on India on account of many factors including corporate tax rate cut, RERA, among others have helped in this regard
The valuations in the Indian stock markets were very high.
"Besides factors within India, international factors including lower interest
rates in USA, near-zero interest rates in economies like Japan, and negative interest rates in parts of Europe are also driving investments
into India," Harsh Jain, co-founder and COO, Groww said.
Regarding future course of FPI flows, Srivastava said there are few negative
developments like recent political issues in India and re-emergence of trade war between US and China, which FPIs would be watchful of
While the government has taken several measures to revive the economy the results are yet to be seen.