• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
  • Contact
  • About
Sunday, May 22, 2022
Snohomish County News Now
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
No Result
View All Result
Home Business

FPI Return Drives Market Recovery – The Indian Express

fpi-return-drives-market-recovery-–-the-indian-express
Share on FacebookShare on Twitter

After sustained selling in domestic markets for several weeks, foreign portfolio investors (FPIs) seem to have returned with buy orders.

FPIs bought stocks worth Rs 312 crore on Wednesday and Rs 2,800 crore on Thursday when the Sensex gained 1,048 points to 57,863.93. The return of FPIs coincided with the US Federal Reserve’s decision to hike key policy rates by 25 basis points to a target range of 0.25 per cent to 0.5 per cent. The markets have witnessed a smart recovery over the last one week and risen 9.5 per cent since it closed at 52,842 on March 7.

The sell-off by FPIs has led to withdrawal of over Rs 225,000 crore from Indian stock markets since October last year with the Russia-Ukraine conflict adding to the nervousness of FPIs which have already priced in interest rate hike by the US Federal Reserve.

The FPI pull-out has hit the rupee with its exchange rate against the dollar falling below the 76 level despite heavy RBI intervention. The rupee recovered to 75.80/81 on Thursday Foreign investors withdrew Rs 41,617 crore in March. This outflow has come after withdrawals of Rs 45,720 crore in February and Rs 41,346 crore in January. With this, FPIs have pulled out Rs 2,25,649 crore (excluding FPI investments in IPOs) since October 1, 2021.

FPI selling was mainly confined to financials and IT since these segments constitute the bulk of assets under the custody of FPIs. FPIs sold IT stocks worth Rs 10,984 crore in February, but in March IT is one of the best performing sectors. However, domestic institutional investors (DIIs), led by LIC, mutual funds and insurance companies, have been stepping up their purchases, absorbing most of the FPI sales. “There is a tug-of-war going on between FPIs and DIIs,” said an analyst. Countering the FPI strategy, DIIs have invested Rs 31,620 crore in March 1-17, adding to their total investments of Rs 161,893 crore since October 2021. DIIs invested a record amount of Rs 42,084 crore in February, their highest monthly investment since they put Rs 55,595 crore in March 2020 when Covid pandemic hit the country.

According to an ICICI Securities report, stock markets were witnessing consistent buying by domestic investors in the face of unprecedented selling by FPIs during rare and extreme fear-inducing events seen over the past few years (Covid pandemic and global brinkmanship due to the Russia-Ukraine conflict).

“This is a clear positive surprise and heralds the structural deepening of domestic savings into equities in India. Such behaviour of aggressive buying during declining stock prices by domestic investors should result in improved long-term outcomes for their portfolios against buying in a high-optimism phase of the market, and thereby setting off a virtuous cycle,” it said.

According to analysts, if Russia-Ukraine talks lead to peace and crude oil prices decline, the market could recover further and FPIs are likely to remain buyers.

Snohomish County News Now

© 2021 Snohomish County News Now

Navigate Site

  • Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
  • Contact
  • About

Follow Us

No Result
View All Result
  • Home
  • About
  • DMCA Policy
  • Medical Disclaimer
  • Privacy Policy
  • Disclosure
  • CCPA
  • Terms of Use

© 2021 Snohomish County News Now

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT