New Delhi: Continuing its heavy selling spree for the eighth consecutive month, foreign investors pulled out nearly Rs 40,000 crore from the Indian equity market in May on fears of an aggressive rate hike by US Federal Reserve that dented investor sentiments. With this, net outflow by foreign portfolio investors (FPIs) from equities reached at Rs 1.69 lakh crore so far in 2022, data with depositories showed.Going ahead, FPI flows will remain volatile in the emerging markets on account of rising geo-political risk, rising inflation, tightening of monetary policy by central banks, among others, Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities said. According to the data, foreign investors withdrew a net amount of Rs 39,993 crore from equities in May. This massive outflow is the major factor for the weakness in the Indian market.Himanshu Srivastava, associate director - manager research, Morningstar India, attributed the latest sell-off to concerns over the prospects of more aggressive rate hike by US Fed going ahead.US Fed has hiked rates twice this year to battle surging inflation caused by the disruption in supply chain due to the war between Russia and Ukraine.Additionally, there are concerns of uncertainty on the ongoing military conflict between Russia and Ukraine which is impacting the crude prices.Globally, the rate hikes by US Federal Reserve, tightening of monetary policy by the global central banks and appreciation of the foreign currency dollar rate has triggered the offshore investors to offload the equities from sensitive markets," said Manoj Purohit, Partner &amp; Leader – Financial Services Tax, BDO India.According to Srivastava, investors are also cautious due to the fear that high inflation could hamper corporate profits and also impact consumer spending.These factors, along with the continuation of war between Russia and Ukraine could further dislodge global economic growth.On the domestic front too, the concerns over surging inflation as well as further rate hikes by the RBI, and its impact on the economic growth, loomed large, he added.Foreign investors have been taking out money from equities in the last eight months (from October 2021 to May 2022), withdrawing a massive net amount of Rs 2.07 lakh crore.However, there are signs of FPI selling exhaustion. In the early days of June, FPI selling is in very small amounts, VK Vijayakumar, Cheif Investment Strategist at Geojit Financial Services, said.The sell-off in the month of June could be attributed to rising risk of inflation and elevated crude oil prices, Kotak Securities' Chouhan said."If the dollar and the US bond stabilise, FPI selling is likely to stop and may even reverse."On the contrary, if US inflation remains elevated and dollar and bond yields continue to rise, FPIs may resume selling. US inflation data is the key," Vijayakumar said. In addition to equities, FPIs withdrew a net amount of about Rs 5,505 crore from the debt market during the period under review.They have been incessantly withdrawing money from the debt side since February.Apart from India, other emerging markets, including Taiwan, South Korea, Indonesia and the Philippines, witnessed outflow in the month of May.—PTI

Continuing its heavy selling spree for the eighth consecutive month, foreign investors pulled out nearly Rs 40,000 crore from the Indian equity market in May on fears of an aggressive rate hike by US Federal Reserve that dented investor sentiments.

FPIs pull out nearly Rs 40,000-cr from equities in May

Continuing its heavy selling spree for the eighth consecutive month, foreign investors pulled out nearly Rs 40,000 crore from the Indian equity market in May on fears of an aggressive rate hike by US Federal Reserve that dented investor sentiments.



New Delhi: The relentless selling by foreign investors appears to have taken a breather as they have turned net buyers so far this month with an investment of nearly Rs 1,100 crore in the Indian equity market.This comes following a net withdrawal of Rs 50,145 crore from equities in June. This was the highest net outflow since March 2020, when they had pulled out Rs 61,973 crore from equities, data with depositories showed.There has been an exodus of Foreign portfolio investors (FPIs) from Indian equity markets over the last nine months, since October 2021."Given the headwinds in terms of rising inflation and tightening monetary policy, we expect FPI flows to remain volatile," Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities, said.According to data with depositories, FPIs invested a net amount of Rs 1,099 crore in Indian equities during July 1-22.They have significantly slowed down their relentless selling and have even turned buyers for several days this month particularly during the last few days.The declining trend of net outflow over the last few weeks coupled with occasional buying does signify that the net outflow from FPIs have bottomed out. The net inflow was driven by better earnings and decline in commodity prices, Chouhan said.Another factor that helped in net inflow was expectation of less aggressive rate hike by the US Federal Reserve in its upcoming policy meeting than what was anticipated earlier. This also softens the dollar index, which augurs well for emerging markets like India, Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, said.There is also a reduced possibility of recession in the US or it would be less impactful. In addition to that, the recent corrections in the markets have also provided a good buying opportunity for FPIs, he added.Echoing similar views, Vijay Singhania, chairman at TradeSmart, said, "poor economic data in the US has given hope that the Federal Reserve might not increase rates at the speed as envisaged earlier along with better-than-expected corporate results also helped improve investor confidence".Finally, Russia opening the tap to allow natural gas flow to Europe has raised hope of a truce going forward. The Russia-Ukraine deal of opening the border for food grains export is also a big boost, he added."It appears that INR depreciation is almost over for now. The dollar index which had moved above 109 is now down to 107.21. This is one of the factors that have contributed to the change in FPI strategy," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.He, further, said that the present trend is likely to continue for the near-term. However, a lot will depend on the news from the US, relating to the economy and markets.So far this year, FPIs pulled out around Rs 2.16 lakh crore from equities. This was the highest ever net withdrawal by them. Before that, they withdrew Rs 52,987 crore in the entire 2008, data showed.According to Morningstar India's Srivastava, the current buying by FPIs cannot be construed as a change in trend, or that FPIs have made a complete comeback.The scenario is evolving, and it may take a while for clarity to emerge. For instance, if the US Fed rate hike turns out to be more aggressive than what is accounted for at the moment, then this flow trend may quickly reverse.In addition to equities, FPIs infused a net amount of Rs 792 crore in the debt market during the period under review.Apart from India, FPI flows were positive in South Korea and Thailand, while it was negative for Taiwan, Indonesia and Philippines during the period under review.—PTI

The relentless selling by foreign investors appears to have taken a breather as they have turned net buyers so far this month with an investment of nearly Rs 1,100 crore in the Indian equity market.

FPIs return to Indian equities; invest Rs 1,100 cr in Jul

New Delhi: On Thursday, the Congress claimed a Joint Parliamentary Committee is needed to determine who weakened and then deleted the basic rule in this regard to benefit the Adani group. The Congress also requested that SEBI guarantee thorough disclosure of ownership of Foreign Portfolio Investors from retrospective effect.
The demands were made a day after the Securities and Exchange Board of India (SEBI), which regulates India's financial markets, recommended enforcing more information regarding the holding of high-risk Foreign Portfolio Investors (FPIs).
To help the Adani Group, Congress general secretary for communications Jairam Ramesh said that the market regulator is now looking to tighten the rule that it was "forced to dilute" in December 2018 and its removal in August 2019.—Inputs from Agencies

On Thursday, the Congress claimed a Joint Parliamentary Committee is needed to determine who weakened and then deleted the basic rule in this regard to benefit the Adani group.

Cong wants JPC probe of SEBI's "forced diluting" FPI disclosure standards to favour Adani

New Delhi (The Hawk): With regard to the upcoming World Food India-2023, an investor roundtable interaction was co-chaired by the Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), and the Secretary, Ministry of Food Processing Industries with agri-food processing companies in New Delhi, yesterday. The roundtable witnessed participation from the leading global and Indian food processing companies. During the interaction, the future plans of the participating companies and their prospects of partnerships with MoFPI for the WFI-2023, being organized from 3-5 November, 2023 at Pragati Maidan, New Delhi, were discussed. In his special address, Secretary, DPIIT emphasized on the importance of manufacturing sector in the growing Indian GDP. He also mentioned the favourable agro-climatic zones in India which are not just suitable for production of a wide variety of agri-commodities like cereals, pulses, fruits, vegetables etc., but also to process them in large quantities. In her keynote address, Secretary, MoFPI mentioned about the growth and vast opportunities present in the food-processing sector. She added that the ministry is organizing the 2nd edition of the highly anticipated World Food India event, envisioning an even larger scale compared to the previous 2017 edition. The Secretary extended a heartfelt invitation to all companies to participate in the event with great enthusiasm. During the roundtable, the participating companies expressed their optimistic outlook on the Indian market and lauded the various initiatives taken by the Government of India to improve the business environment, including the favourable policies such as the Production Linked Incentive Scheme and the flagship Pradhan Mantri Kisan Sampada Yojana initiated by MoFPI. The companies also expressed their interest in participating in World Food India-2023 and affirmed their willingness to sponsor the event and showcase their products and technologies through dedicated stall spaces. Many companies also showed keen interest on partnering with MoFPI for the sessions that are being planned as part of the event. In his closing remarks, Additional Secretary, MoFPI mentioned that the Investment Facilitation Cell (Invest India) and event partner FICCI will stay in touch with the companies to firm up the participation details. EY is roped in as the knowledge partner for the event.

 With regard to the upcoming World Food India-2023, an investor roundtable interaction was co-chaired

Meeting Witnessed Participation From Leading Global And Indian Food Processing Companies

New Delhi [India]: Indian stock indices started off the New Year marginally in the red, extending losses from the previous session, primarily attributable to profit booking after a stellar cumulative performance in 2023. High valuations, as analysts pointed out, too, are a concern. On Friday, the last active session of 2023, benchmark indices - Sensex and Nifty -- settled the session marginally low, largely due to profit booking and subdued global cues.
Cumulatively, the past 12 months have been stellar for investors who parked their money in Indian stocks. Though there has been some turbulence, first during the Adani-Hindenburg episode and lately during the initial days of the Israel-Hamas war, the calendar year 2023 gave handsome monetary dividends to stock market investors. In 2023, Sensex and Nifty gained 18-19 per cent, on a cumulative basis. The indices had gained a mere 3-4 per cent in 2022.  Foreign Portfolio Investors (FPIs) have trained their sight towards India, becoming net buyers in the country's stock market in the calendar year 2023. In December, especially, they made a beeline to invest in Indian stock markets, with a cumulative accumulation of Rs 66,135 crore. To put it into context, the entire year saw an inflow of about Rs 171,107 crore, and notably, over one-third of it came in December. In November, the FPI inflow was Rs 9,001 crore, data from the National Securities Depository (NSDL) showed. The strong inflow of funds from foreign portfolio investors (FPIs) lately also supported the stocks to march towards multiple all-time highs. Firm GDP growth forecast, inflation at manageable levels, political stability at the central government level, and signs that the central banks world over are done with their monetary policy tightening have painted a bright picture for India - which many agencies have termed the fastest-growing major economy.  "The concern, however, is that most of this good news is in the price; valuations are a bit stretched and above the long-term averages. So, the market is vulnerable to corrections from presently unknown risks. The broader market is overvalued; safety is in large-caps," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Going ahead into the week, the key triggers for the markets in the first week of the new year include S&amp;P Global Manufacturing PMI and Services PMI due on Wednesday and Friday, respectively. On the macroeconomic front, the US Federal Reserve will release the minutes of the latest monetary policy meeting on Thursday.
—ANI

Indian stock indices started off the New Year marginally in the red, extending losses from the previous session, primarily attributable to profit booking

Indian stocks off to a weak New Year, trading marginally in red

New Delhi: Foreign portfolio investors (FPIs) continued to remain net buyers for the third month in April in Indian stock markets. So far in the month, they bought stocks worth Rs 13,347 crore in India, National Securities Depository Limited (NSDL) data showed. Foreign Portfolio Investment (FPI) involves an investor buying foreign financial assets.
FPIs had aggressively sold Indian stocks and turned net sellers in the Indian equity market in January 2024, before turning net buyers thereafter. "A major concern is the surcharged geopolitical situation in the Middle East with heightened tensions between Iran and Israel. These will keep the markets on tenterhooks in the near-term," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, on the FPI outlook. In March, they bought stocks worth Rs 35,098 crore. Firm GDP growth forecasts, inflation at manageable levels, political stability at the central government level and signs that the central bank is done tightening its monetary policy have all contributed to painting a bright picture for the Indian economy.  India's GDP grew at a massive 8.4 per cent during the October-December quarter of the financial year 2023-24, and the country continued to remain the fastest-growing major economy. The foreign portfolio sold aggressively in January after making a beeline to accumulate domestic stocks during the prior two months-- November and December. In December, they accumulated stocks worth Rs 66,135 crore. In November, the FPI inflow was Rs 9,001 crore, NSDL data showed. To put it into context, the entire year saw an inflow of about Rs 171,107 crore, and notably, over one-third of it came in December. The strong inflow of funds from foreign portfolio investors (FPIs) had then supported the benchmark stock indices to march towards all-time highs. Before November, FPI participation in Indian stocks was lukewarm, and they had turned net sellers. They sold Rs 14,768 crore and Rs 24,548 crore in September and October, respectively. Before that, FPIs bought Indian stocks worth Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, Rs 47,148 crore, Rs 46,618 crore, and Rs 12,262 crore in March, April, May, June, July, and August respectively, data showed.
—ANI

Explore how Foreign Portfolio Investors remain net buyers in Indian markets amidst geopolitical tensions. Analyze FPI data, GDP forecasts, and economic outlook.

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FPIs pull out nearly Rs 40,000-cr from equities in May

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FPIs pull out nearly Rs 40,000-cr from equities in May

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