Foreign investors have adopted a cautious stance and infused Rs 7,320 crore in the Indian equities in August owing to high valuation of stocks and the unwinding of the Yen carry trade after Bank of Japan raised interest rates.
This investment was way lower than Rs 32,365 crore in July and Rs 26,565 crore in June, according to data with the depositories.
While September is likely to see continued interest from FPIs, the flows would be shaped by a combination of domestic political stability, economic indicators, global interest rate movements, market valuations, sectoral preferences, and the attractiveness of the debt market, Vipul Bhowar, Director Listed Investments, Waterfield Advisors, said.
According to the data with the depositories, Foreign Portfolio Investors (FPIs) made a net investment of Rs 7,320 crore in Indian equities in August.
The fundamental reason for the poor FPI interest compared to the preceding two months is the high valuation in the Indian market. With Nifty …
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