Foreign portfolio investors (FPIs) have invested a massive Rs 35,109 crore in Indian markets in November so far as corporate earnings and reforms measures undertaken by the government to revive investment activities kept the investors’ sentiment upbeat.
According to the depositories data, FPIs invested a net sum of Rs 29,436 crore into equities and Rs 5,673 crore into debt segment between November 2-13.
During the period under review, a net amount of Rs 35,109 crore was pumped by overseas investors in Indian markets.
FPIs had invested a net sum of Rs 22,033 crore in the preceding month.
Citing reasons for investment in November, Arjun Yash Mahajan, head-institutional business, Reliance Securities said, “Indian markets continue to outperform and have continued to offer FPIs better risk reward propositions in terms of corporate earnings recovery and reform measures undertaken by the government to revive investment activities in the country.”
Additionally, weaker dollar index and absence of quality value play at reasonable valuations in FPIs’ home markets have further given them reason to move allocation to emerging markets like India, Mahajan added.
Going forward, FPIs are expected to remain optimistic on Indian markets, market experts said.
They are advised to bet on sectors which are resilient from prolonged economic downturn, said Mahajan.
“Agriculture in form of auto exposure, pharma, IT, select private banks are attractive sectors to continue to keep on the radar,” he further said.
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