Continuing to bet big on the Government’s reforms agenda, overseas investors have poured in $1.5 billion in the Indian market so far this month taking the total inflow to $35 billion since January.
The net investment by foreign investors into debt market was at Rs12,645 crore (USD 2.06 billion) between October 1-22, while they pulled out Rs 3,500 crore ($570 million) from the stock market during the same period, taking the total to $1.5 billion, as per latest data.
Market analysts maintain that foreign investors (Foreign Institutional Investors or Foreign Portfolio Investors) have been betting on the Indian market mainly on account of the reforms agenda of the new Government at the Centre.
Also, they anticipate inflows would continue in the coming months on slew of measures announced by the government.
The Cabinet has given the go-ahead to deregulation of diesel price and also came out a new gas pricing formula. Besides, Government has promulgated ordinance for e-auction of coal blocks.
Since the beginning of the year, the net investments by overseas investors into Indian equity markets stood at Rs79,938 crore ($13.3 billion) so far this year, while the same for debt markets was at Rs1.3 lakh crore, taking the total to Rs2.10 lakh crore ($35 billion)
Since the beginning of June, FIIs (Foreign Institutional Investors) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Sebi to create a new investor category called Foreign Portfolio Investors.
Strong inflows in the recent months have taken the cumulative net investments of foreign investors into India to over $206 billion since 1991. In rupee terms, their investments are at Rs10 lakh crore level during the period.
2nd quarter earnings to drive stock mkts this week, say experts
A slew of earnings announcements from blue-chips, including Maruti Suzuki and ICICI Bank, will set the tone for stock markets this week, say experts.
Besides, trend in global markets, investment by overseas investors, movement of rupee against the dollar and crude oil price would also influence the trend on bourses.
“We believe positivity would extend further in the days to come; however, traders should be cautious in stock selection due to prevailing earning season,” said Jayant Manglik, President-retail distribution, Religare Securities.
Major earnings this week include those from Hindustan Unilever, lupin, Dr Reddy’s laboratories, Sesa Sterlite, Tech Mahindra, ACC, Ambuja Cements, Bharti Airtel, ICICI Bank, Maruti Suzuki India and Suzlon Energy.
On the global front, the Federal Open Markets Committee (FOMC) will undertake a monetary policy review at a two-day meeting on Tuesday and Wednesday.
The benchmark S&P BSE 30-share Sensex concluded the week at 26,851.05, showing a surge of 742.52 points.