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Tag: FPI

  • SEBI Launches Outreach Cell To Help FPIs Seamlessly Access Indian Securities Market | Economy News

    New Delhi: The Securities and Exchange Board of India (SEBI) on Wednesday launched a dedicated Foreign Portfolio Investor (FPI) outreach cell as part of the Alternative Investment Fund and Foreign Portfolio Investors Department (AFD).

    The markets regulator said in a statement that this outreach cell will focus on direct engagement with FPIs, and support them in accessing the Indian securities market seamlessly. Key responsibilities of the outreach cell will include providing guidance to prospective FPIs during the pre-application stage, including assistance with documentation and compliance processes.

    These will also include offering support during the onboarding phase, and resolving any operational challenges that may arise during the registration process or thereafter. FPIs have been bullish on the Indian stock market despite global geo-political uncertainties.

    The month of September witnessed the second highest inflows in 2024 so far, the last one being in March. Data from NSDL showed that till September 17, FPIs pumped net $3,682 million into Indian equities, higher than the net monthly flows in six out of eight previous months in the current calendar year.

    The primary factors that make emerging markets like India a sweet spot, are balanced fiscal deficits, rate cut impacts on the Indian currency, strong valuations, and RBI’s approach to keep inflation under control without a rate cut.

    The ferocity of the FII buying can be noticed in the massive Rs 14,064 crore buying in the cash market on September 20. The trigger for this aggressive buying by FIIs was the 50 bp rate cut by the US Fed, marking the beginning of a rate cutting. cycle. According to market experts, the trend of FII buying is likely to continue in the coming days. Banking stocks have turned attractive after news of reduction in the credit-deposit gap.

  • FPI Turns Positive In June With Rs 12,170 Crore Investment, But 2024 Net Investment Remains Negative | Economy News

    New Delhi: Foreign Portfolio Investment (FPI) in the Indian equity market turned positive in June with a net investment of Rs 12,170 crore, according to data from NSDL. The data highlights that by June 21, FPIs had injected this amount into the equity market for the month. However, the overall net investment for the calendar year 2024 remains negative, with net selling amounting to Rs 11,194 crore.

    On the last trading session of the previous week, FPIs invested Rs 2,250.20 crore in the Indian markets. The shift in FPI behaviour has been particularly noticeable since June 10, influenced by the election results. (Also Read: Gautam Adani’s 2024 Salary Revealed – Less Than Some Of His Own Employees! Find Out Here)

    “Foreign Portfolio Investors (FPIs) have altered their position in the equity market following the election results, injecting Rs 23,786 crore since June 10th. There are three primary reasons for this positive inflow. First, the continuity of the government assures ongoing reforms. (Also Read: Kolkata Struggles With Soaring Vegetable Prices Due To Scanty Rainfall; Full Details Inside)

    Second, the Chinese economy is decelerating, as evidenced by a 12 percent decline in copper prices over the past month. Third, certain block deals in the market have been eagerly taken up by FPIs,” said Sunil Damania, Chief Investment Officer, MojoPMS.

    In contrast, may saw FPIs withdraw Rs 25,586 crore from the equity market, while in April, they were net sellers with a withdrawal of Rs 8,671 crore. This trend of outflows had created a cautious atmosphere in the market.

    Market experts note that the recent FPI inflows are concentrated in a select few stocks rather than being spread across the market or sectors. They believe that high valuations currently commanded by the Indian equity market will constrain FPI inflows. While June’s figures show a positive net investment, the overall sentiment among FPIs remains one of cautious optimism, tempered by valuation concerns.

    This strategic approach by foreign investors highlights their close monitoring of economic indicators and the government steps before the presentation of budget. As the year progresses, the balance of net investments will likely depend on the evolution of these factors, particularly in the context of global economic conditions and domestic policy continuity.

  • FPIs Sold Equities Worth Rs 27,000 Crore In January | Economy News

    New Delhi: FPIs continued to be sellers in the cash market having sold equity worth Rs 27,664 crores through January 25, said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services. FPIs were sellers in autos and auto auxiliary, media and entertainment and marginally in IT. They bought oil and gas, power and selectively in financial services, he said.

    The rising bond yields in the US is a matter of concern and this has triggered the recent bout of selling in the cash market. The rally in global stock markets was triggered by the Fed pivot which saw the 10-year bond yield falling from 5% to around 3.8%. Now the 10-year is back at 4.18% which indicates that the Fed rate cut will come only in H2 of 2024, he said. (Also Read:BLS E-Services Ltd IPO: Check Opening & Closing Dates, Price Band, Lot Size, GMP, And Other Details)

    As per a report by Kotak Institutional Equities, listed funds witnessed inflows of $2 billion, completely led by ETF inflows. India-dedicated funds witnessed inflows of $3.1 billion, broken down into $2 billion of ETF inflows and $1.1 billion of non-ETF inflows, whereas GEM funds saw $247 million of outflows, led by $337 million of non-ETF outflows, offset by $90 million. of ETF inflows. (Also Read: Now You Can Choose Any Hospital For Treatment; Know All About Game-Changing Rule For Health Insurance)

    Listed emerging market fund flows were mixed. South Korea, Indonesia and Taiwan witnessed $3 billion, $262 million and $76 million of outflows, respectively. China, India and Brazil saw $10.8 billion, $2 billion and $186 million of inflows, respectively. Total FPI and EPFR activity showed divergent trends for Indonesia, South Korea and Taiwan.