The biweekly data available with the depository NSDL suggests that FPIs became excited about banking and financial stocks during November 1-15 and bought stocks in the capital goods, consumer durables, oil and gas and materials sectors. construction, among others.
Data available through Nov. 15 showed that the financial services sector has seen an inflow of Rs 16,389 crore this month. These flows include investments of Rs 11,519 crore in bank stocks. The BSE Bankex is up 19 percent so far this month.
The capital goods sector received investments of Rs 1,709 million from FPI, consumer durables 1,532 million rupees, oil and gas 1,289 million rupees, construction materials 1,090 million rupees and metals and mining 969 million rupees , the NSDL data showed.
The EEB capital goods index has risen 22% this month, the consumer durables index 8.6%, the oil and gas index 7.86% and the metals index 14%.
FPIs were observed to draw money from sectors such as textiles and clothing (Rs 284 million), pharmaceuticals (Rs 96 million), and coal (Rs 95 million). FPI’s total inflows during November 1-15 stood at Rs 29,436 crore.
“It is difficult to explain or predict very short-term flows in periods of one or two weeks. But for this calendar, India has a little over $ 9 billion so far. In the last 10 to 12 years, the highest flow was around $ 30 billion in Calendar 2010. So when you put this year’s figures in that perspective, it doesn’t actually appear to be extremely high. ” said Manishi Raychaudhuri of BNP Paribas.
Despite a strong outflow of Rs 61,973 crore in March, FPI flows have returned strongly to the domestic market with total investments exceeding Rs 90,000 crore so far this year.
“There is a quest for performance around the world. In a world where the cost of capital has been reduced to extremely low levels, countries like India, which offer relatively higher long-term growth, are sure to fascinate foreign investors. This is exactly what we are seeing here, ”Raychaudhuri told ETNOW.
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