Net consumers for third straight month: Vaccination, progress hopes assist hold FPI faucet on

Continuing the shopping for spree for the third consecutive month, overseas portfolio traders (FPIs) have invested Rs 17,304 crore in home markets in March.
According to depositories information, FPIs invested Rs 10,482 crore into equities and Rs 6,822 crore within the debt section throughout March.
The whole web funding stood at Rs 17,304 crore through the interval beneath overview.
Previously, abroad traders had invested Rs 23,663 crore in home markets in February and Rs 14,649 crore in January, on a web foundation. The rising instances of Covid-19 infections are affecting investments within the Indian markets, Groww co-founder and COO Harsh Jain famous.
Yet, the markets have been comparatively far more secure throughout second wave as a result of vaccination drive and financial system wanting up, he added.
Morningstar India affiliate director (supervisor analysis) Himanshu Srivastava mentioned there was a gush of liquidity within the world monetary markets after the US introduced a pandemic aid bundle of $1.9 trillion which flowed into rising markets like India.
Also, a rejig in among the world indices led web inflows into Indian equities, he famous.

Besides, expectations of excessive financial progress, an enormous vaccination drive and enchancment in earnings progress have been few such components that make India an excellent funding vacation spot from a long-term perspective, he additional mentioned.
Kotak Securities govt vice-president and head (basic analysis) Rusmik Oza mentioned, “On the back of higher growth expectation from US economy some of the export driven emerging markets like South Korea and Taiwan have started witnessing FPI flows … However, the overall, emerging market flows are still below expectation.”

In the long run, rising Covid-19 instances within the nation may very well be a dampener. The uncertainty round this might drive FPIs to undertake a cautious stance and go right into a wait and watch mode, Srivastava mentioned.