In the first week of October alone, foreign investors invested over Rs 2,400 crore in Indian stock markets.
While foreign investors pulled out Rs 7,600 crore last September due to fears of rising inflation and recession in the world, they started investing in stocks again in October. However, in the coming months, foreign investment is expected to fluctuate depending on international and domestic economic conditions.
‘A drop in employment in the US and a smaller-than-expected rate hike by the Australian central bank have fueled optimism among investors that global interest rates could soon peak. However, until then, the continuation of foreign investment is likely to remain volatile in the coming months,’ said Srikanth Chauhan, financial advisor at Kotak Securities.
Foreign investors poured in Rs 2,440 crore into equities in the first week of October, after withdrawing over Rs 7,600 crore in September due to the US central bank’s hawkish interest rate hike and continued depreciation of the rupee, according to bourses data.
“Earlier in August, Rs. 51,200 crore and had invested nearly Rs 5,000 crore in July. Prior to July, foreign investors had been selling stocks for nine consecutive months since October last year. By early October, investors had turned somewhat into buyers.
But there doesn’t seem to be any consistent consistency. They will become durable buyers only when the US dollar peaks and shows steady decline,” said Vijayakumar, Chief Economic Advisor, Geojit Financial Services.
‘Growth is expected to pick up as revenue increases on the back of higher GST and direct tax collections. This will lead to a positive stance for foreign investment in Indian markets. However, rising global bond prices should be watched closely,” said Anita Gandhi of Arihant Capital.
This year alone, foreign investors have withdrawn Rs 1.66 lakh crore from Indian stock markets, according to reports. 2022 is mostly affected by fluctuations in the dollar and interest rates. And the long-term outlook is likely to continue to attract foreign investment to Indian markets,” said Abhishek Dev, CEO, Epsilon Money Martin.
On the other hand, foreign investors pulled out Rs 2,950 crore from the debt market during the same period. Apart from India, Taiwan, Indonesia, South Korea and Thailand also enjoyed a favorable environment for foreign investment during this period.
Subscribe Dinamalar channel for new news