Overseas Investors Reignite Interest in Indian Equities, Breaking Selling Streak

Overseas Investors Reignite Interest in Indian Equities, Breaking Selling Streak

VoM News Desk | December 28, 2023 | 12:01 AM IST | Breaking News | Follow on Google News

Overseas Investors Reignite Interest in Indian Equities, Breaking Selling Streak/Reuters

Overseas Investors Reignite Interest in Indian Equities, Breaking Selling Streak

Foreign portfolio investors (FPIs) have renewed their interest in Indian equities, putting an end to a six-session selling trend. Preliminary data from the National Stock Exchange (NSE) indicates FPIs acquired Indian stocks worth Rs 2,926.1 crore on a particular Wednesday. This resurgence of interest by foreign investors is a positive indicator for the Indian stock market, reflecting a hopeful economic outlook.

Domestic vs. Foreign Institutional Investors

In contrast, domestic institutional investors continued their selling trend for the second consecutive day, offloading stocks valued at Rs 192 crore. However, foreign institutions have accumulated Indian equities worth Rs 1,62,247 crore since the beginning of 2023, as per data from the National Securities Depository Ltd. (NSDL) until the last trading session.

Indian Equities: Magnet for Global Investors

Indian equities are poised to complete their eighth consecutive year of gains, fueled by robust economic growth, a pause in interest rate hikes, and substantial infrastructure development, driving the market to new heights. Leading sectors include real estate, industrials, and capital goods. Conversely, the Adani Group companies, despite a recent recovery, are likely to end the year with losses.

Foreign Portfolio Investors (FPIs) recorded a net investment of Rs 57,313 crore in Indian equities in December, marking the highest monthly inflow in a year. This surge can be attributed to factors like political stability, positive sentiment, a robust economy, impressive corporate earnings, and a wave of Initial Public Offerings (IPOs) in India. The decline in U.S. bond yields has prompted a shift in FPIs’ strategies, and the U.S. Fed’s indication of potential rate cuts next year bodes well for emerging markets like India.

Indian Market Performance

Indian market indices have exhibited impressive performance. The NSE Nifty 50 index surged by 213 points or 1%, closing at 21,654.75. Simultaneously, the S&P BSE Sensex climbed by 702 points or 0.98%, surpassing the 72,000 mark for the first time to settle at 72,038.43. These milestones underscore India’s robust economic growth and the confidence of foreign investors in the country’s economic trajectory.

VoM News Desk

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