3 weeks ago

FPIs Continue Buying Indian Equities Amid Stronger GDP, Earnings Outlook

FPIs Continue Buying Indian Equities Amid Stronger GDP, Earnings Outlook
Foreign Investors Step Up India Buying, Stronger GDP & Earnings Outlook Could Sustain FPI Inflows · freepressjournal.in

When grown-ups in other countries save money, they can choose to buy small pieces of companies in India, called shares.

Lately, these foreign investors have been buying lots of Indian shares.

In the first days of August, they bought shares worth Rs 12,920 crore.

That is a huge amount of money.

They are buying because Indian companies seem to be making good profits and the country's economy is growing.

They especially like companies that make cars, household items and medicines.

Indian stock markets ended the week a little higher, and smaller companies' shares went up the most.

But one thing worries investors: interest rates in America are higher, which can pull money away from India.

Experts think foreign investors will keep buying as long as big risks do not appear.

Key facts

FPI equity purchases (through Aug 7)
Rs 12,920 crore
Stock exchange purchases
Rs 8,195 crore
Primary market purchases
Rs 4,125 crore
Preferred sectors
Automobiles, consumer durables, healthcare
US 10-year bond yield
Around 4.67 per cent
Sensex (weekly)
Gained 0.52% to close at 78,499.17
Nifty (weekly)
Rose 0.77% to 24,570.65
Small-cap index (weekly)
Gained 2.61%

Quotes

An unnamed analyst

Financial analyst

“FPIs have shown a preference for sectors including automobiles, consumer durables and healthcare.”
freepressjournal.in
“However, high bond yields in the United States remain an important challenge.”
freepressjournal.in

Sources

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