New Delhi, October 12 (IANS). Foreign Portfolio Investors (FPIs) have again become net buyers in the Indian stock market this month and invested more than Rs 3,300 crore. This information was given in the data given on the depository.
Data released on National Securities Depository Limited (NSDL) showed that FPIs have invested Rs 3,358 crore (till October 10) in the Indian stock market. This includes investments in equity, debt, hybrid and mutual funds.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said this change in FPI trading strategy is significant and there are two reasons for it.
First – the valuation gap between India and other markets, which was higher earlier, but has narrowed significantly in recent weeks following the rally in other markets and consolidation in the Indian market.
Second- Market experts have increased India’s growth and earnings prospects. Indian companies’ earnings are expected to increase in FY27 due to GST cut and low interest rates.
Foreign investors were net buyers in the cash market in the last four trading sessions of the week ending October 10.
The purchasing figure in the cash market during the last four trading sessions was Rs 3,289 crore.
Global market sentiment has once again turned negative as the US-China trade war flared up again after US President Donald Trump threatened to impose 100 per cent tariffs on imports from China and ban several important US exports to China.
Analysts say going forward FPI inflows will depend on how this new trade war progresses in the coming days.
Siddharth Khemka, Research Head (Wealth Management), Motilal Oswal Financial Services Limited, said that last Friday, Nifty closed at 25,285, up 104 points. This was due to an improvement in global sentiment, supported by easing geopolitical tensions with Israel and Hamas agreeing to the first phase of a ceasefire plan and signs of progress on a possible India-US trade deal.
“Fresh FPI buying also boosted positive sentiment. Additionally, India and UK have announced several collaborations across sectors including education, critical minerals, climate change and defence, which is positive for the market,” he said.
–IANS
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