Foreign Portfolio Investors (FPIs) have been net buyers of Rs 1,997 crore so far this month. India continues to be an attractive investment destination from the long-term perspective. According to data from depositories, FPIs invested Rs 1,530 crore in equities and Rs 467 crore in debt segment between October 1-8. Their total net investment stood at Rs 1,997 crore.
FPIs have been net buyers in the last two months. He had invested Rs 26,517 crore in September and Rs 16,459 crore in August.
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Analysts said that in recent weeks, FPIs have invested in IT by selling in the banking sector.
Despite the high valuations of IT stocks, there has been an increase in investments in this sector due to the possibility of increasing earnings. The banking sector is grappling with low credit growth and fears of deteriorating asset quality.
India continues to be an important and attractive investment destination from the long-term perspective and this has led to increased investment by FPIs in equities.
Trading close to the high levels of the stock market can also lead to profit booking by foreign investors.
Apart from India, FPIs have also increased investment in Philippines and Thailand. They have sold in Taiwan, South Korea and Indonesia.
In the coming months, volatility in global markets may have an impact on foreign investment. The reduction in bond purchases by the US Federal Reserve could also lead to a sell-off by these investors in emerging markets.
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