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According to Himanshu Srivastava, Associate Director, Manager Research at Morningstar Investment, FPI is expected to be cautious in waiting for more clarity on the US Fed’s interest rate trajectory, geopolitical developments and India’s domestic economic outlook.
FPI has launched equity shares worth Rs 1,794 crore ($ 194 million) for the week ended March 21.
The Indian Equity Market has seen a moderation under the pressure of FPIS with narrowness for Rs 1,794 crore (USD 194 million) last week, which reduces global concerns and extending optimism around a potential D-skeleton in a potential D-skeleton in the Russia-Ucraine conflict. However, despite this positive change, it still marks the 15th consecutive week of outflow.
According to Himanshu Srivastava, Associate Director of Manager Research at Morningstar Investment, foreign portfolio investors (FPIs) are expected to be vigilant, which is waiting for more clarity on the US Federal Reserve’s interest rate trajectory, geo -political development and India’s domestic economic approach.
According to data with the depository, FPI has launched equity shares worth Rs 1,794 crore ($ 194 million) for the week ended March 21. It was compared to the outflow of $ 604 million seen in the holiday-shorted erstwhile week.
Last week, FPI replaced net buyers on two occasions, with significant purchases of Rs 3,181 crore on 21 March and Rs 710 crore on March 19.
“Recently in the sale of FPIs, Ultrafer has changed the market sentiments for better for the convenience of a rally in the market for the week ended March 21.
“It can be argued that positive domestic fundamentals such as pick -up and fall in inflation have contributed to a change in the dollar’s weakness with a weakness in the dollar,” said VK Vijaykumar, the main investment strategist, Geoget Investment Services.
Investor Bhavna has shown signs of reform, saying Srivastava, by reducing global concerns and increasing optimism around a possible de-sizecase in the Russia-Ukraine conflict.
Positive domestic development promoting India’s better-and-encompassing trade deficit and China’s stimulation consumption has given more support to emotions. Additionally, recent market reforms have presented attractive entry points for investors, he said.
Srivastava also stated that the US Federal Reserve supported the back of foreign fund flow in emerging markets like India by softening the US dollar index with increasing expectations of the rate of deduction.
Commentary from Fed-This year has been encouraged to re-enter Indian equities, indicating on the possibility of deducting a two-rate deduction.
However, despite this renewed interest, FPIs have still withdrawn Rs 31,719 crore from the market so far in March, after Rs 34,574 crore in February and Rs 78,027 crore in January. As a result, the total FPI outflow for 2025 has now reached Rs 1.44 lakh crore as per the data of deposits.
On the other hand, with a total loan investment of Rs 10,955 crore in March through March 21, the FPI investment trend in the loan has continued. This indicates a change in FPI strategy, in favor of loan equipment on equity amidst market volatility.
(This story has not been edited by News18 employees and a syndicated news agency has been published from PTI)
