Will get the love of foreign investors again, waiting for 10 years is a record! - Newztezz Online

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Sunday, January 14, 2024

Will get the love of foreign investors again, waiting for 10 years is a record!

In the current month, FPI invested Rs 7,912 crore in the bond market. This means that in the current month, foreign investors have invested Rs 9034 crore in equity and bonds together. Earlier, FPI had invested Rs 18,302 crore in the bond market in December.

Amid uncertainty over the interest rate outlook, foreign portfolio investors (FPIs) have adopted a cautious approach and have invested around Rs 3,900 crore in Indian stock markets in the first two weeks of January. Earlier, in the entire month of December, FPIs had invested Rs 66,134 crore in the Indian stock markets. Whereas in November, FPI had invested Rs 9,000 crore in shares. According to depository data, foreign portfolio investors have invested a net Rs 3,864 crore in Indian shares so far this month (till January 12).

The biggest question is whether the 10-year-old record of investment by foreign investors will be broken in the current year? The main reason for this is that investment of more than Rs 2.50 lakh crore came that year. Then the country's Prime Minister Narendra Modi took power at the Center for the first time. This time he is trying to take power of the country in his hands for the third time in a row. The world's eyes will be on this election. In such a situation, investors will decide their stance only after the results. Let us also tell you how January has started. And what will be the attitude of investors in the coming time.

Foreign investors are cautious

Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Advisor India, said that the current investment trend of investors is due to profit booking, because the Indian stock market is currently at its lifetime high. He said that apart from this, due to uncertainty regarding the interest rate scenario, FPIs are also on the sidelines and they are weighing the indicators before taking any investment decision. He said that due to the ongoing geopolitical tension, FPIs are being cautious while taking investment decisions.

How much to invest in bond market

Meanwhile, data shows that FPIs remain attracted to the loan or bond market. During the period under review, FPI invested Rs 7,912 crore in the bond market. This means that in the current month, foreign investors have invested Rs 9034 crore in equity and bonds together. Earlier, FPI had made a net investment of Rs 18,302 crore in the bond market in December, Rs 14,860 crore in November and Rs 6,381 crore in October.

What was the total investment last year?

If we talk about last year, foreign investors had invested a lot in the equity and bond markets. Talking about equity investment, Rs 1,71,107 crore was seen. Last year, investors had invested a total of Rs 68,663 crore in the debt market. This means that investors had invested a total of Rs 2,37,062 crore in the equity and debt markets. Before this, the last time a total investment of more than Rs 2 lakh crore was seen in the year 2017. That year, the maximum investment was Rs 148808 crore in debt and Rs 51252 crore in equity.

The record of 2014 was not broken

By the way, the data of year 2023 was the second best investment in the last 10 years. The year 2014 saw the highest foreign investment in the last 22 years. Then an investment of Rs 2.50 lakh crore was seen. During that period, investment of Rs 1,59,152 crore was made in the debt market. An investment of Rs 97,059 crore has been made in the equity market. If experts are to be believed, elections are going to be held this year. After seeing the election results, foreign investors will decide their investment direction. If a strong government is formed in the country this year too, then the record of 2014 can also be broken.

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