Foreign Portfolio Investors (FPIs) have pumped in a net amount of 5,319 crore in the Indian capital market despite a huge recovery in equities in the past fortnight.
In October, they were net sellers 12,437 crores.
According to depository data, foreign investors have net 1,400 crore in equity and 3,919 crore in the debt segment between November 1-26.
This translated into a total net investment of 5,319 crores.
“Since then FPI Holding a large amount of banking stocks, they have been a major seller in this segment. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Continuous selling has made banking stocks attractive from a valuation perspective.
He further said that the sharp decline in the market on November 26 mainly stemmed from concerns over the new strain of virus seen in South Africa, Botswana and Hong Kong.
Himanshu Srivastava, Associate Director – Manager Research, Morningstar India said, “Despite the recent correction, the market remains elevated and hence FPIs may have booked profits.
He said that trend reversal on a weekly basis has become the norm with regard to FPI inflows into the Indian debt markets.
FPI Will be closely watching the spread of the new coronavirus variant and its potential impact on development globally.
He added that high valuations are also a matter of concern which could lead to continued profit-booking at regular intervals.
Shrikant Chauhan, Head-Equity Research (Retail), Kotak Securities. PTI SRS MKJ MKJ
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