New Delhi: Foreign Portfolio Investors (FPI) back out from Indian Market with Rs 2,867 crore in the ongoing month of July so far, prompted after profit booking from Indian equities surge.
As per the depositories data, the offshore investors have pulled out a total net outflow of Rs 2,867 crore compromised of net Rs 2,210 crore from the equities segment and Rs 657 crore from the debt segment in between July 01-10, 2020.
FPIs pulls out action has done after an investment of Rs 24,053 crore in the Indian domestic market in June.
Kotak executive, vice president, head of fundamental research – Rusmik Oza said Foreign Portfolio Investors have been net investors in the Indian market in the month of June as the valuation has gained much after the surge in Indian equities and discouraging Q4 FY2020 earning.
Morningstar India, associate director – manager research – Himanshu Srivastava said After the prevailing Indian equity market buyers in June, FPIs have lost the steam with their Indian equities investment in July so far.
“This whole investment could be done by FPIs to book intermittent profits in the surging Indian equity market in June and in July,” he said.
“With the ongoing market situation, the Indian market is a very good investment option with long term investment horizon considered for FPIs as once the vaccine for Covid-19 develops and the market picks up the steam. With increased liquidity in global markets, many would-be continuing to opt to invest in emerging markets, with India too getting advantage from the same,” he added.
“The equity inflows is anticipated to follow the trend as long term, vigorous fundamentals and potential of growth overweigh short term uncertainty and volatility,” Harsh Jain, co-founder, and COO, Groww said.