The flood of FPI flows into India continues with Rs 21,943 crore of inflows (together with bulk offers) until eighth of this month, says V.Okay. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
If this development continues, month-to-month FPI flows in July will exceed the figures in May and June, which have been Rs 43,838 crore and Rs 47,148 crore, respectively, he added.
This ‘U’ flip in FPI flows which have been unfavourable Rs 34,626 crore in January and February (mixed) this 12 months has been the first driver of the sturdy rally that we’re witnessing available in the market because the lows of March.
FPIs have been steadily shopping for in monetary providers, cars, capital items and building. Recently they’ve stepped up shopping for in FMCG and energy.
The promoting development in IT continues.
FPI technique is focussed extra on country-specific components relatively than sectoral prospects inside a rustic. That’s why they adopted the ‘Sell India, Buy China’ technique in Jan and February. During these two months FPIs offered in monetary providers for Rs 15,744 crores, he mentioned.
Now, pursuing the ‘Sell China, Buy India’ technique, the identical FPIs have purchased shares in monetary providers for Rs 19,229 crore in June alone and this shopping for development continues.
(With inputs from IANS)