Why FIIs are Flocking to India: Uncover the Secrets Behind the Resilient Market and Thriving Economy
Mumbai, Dec 28: Despite stock market fluctuations spurred by geopolitical uncertainties, foreign institutional investors (FIIs) have persistently invested in India throughout 2024, buoyed by the country’s robust economic resilience, according to market analysts.
Data from the National Securities Depository Limited (NSDL) reveals that FIIs offloaded equities worth Rs 119,277 crore via stock exchanges. However, this was counterbalanced by Rs 120,932 crore channelled into the primary market, marking FIIs as net investors. Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributes this dual approach to differing valuation perceptions—high valuations led to exchange selling, while fair valuations spurred primary market investments.
After a pronounced selling spree in October and November, December saw a tapering in FII sell-offs, with sporadic buying before a slight return to selling, albeit less intense. Significantly, FIIs have been steady investors in the primary market, injecting Rs 17,331 crore by December 27. The trend of selling through exchanges juxtaposed with buying via the primary market has characterized 2024’s FII activity. In the debt market, FIIs have injected Rs 112,409 crore thus far.
Looking ahead, experts anticipate a potential shift to selling equities in early 2025, influenced by the appreciating dollar and attractive US 10-year bond yields. FIIs are expected to become buyers again when signs of growth and earnings recovery emerge.
Manoj Purohit of BDO India noted a resurgence of foreign investors this month following significant market outflows. He highlights record-breaking foreign direct investments (FDI) surpassing the $1 trillion mark, a testament to India’s appeal. Factors driving this renewed FII interest include recent US policy announcements, geopolitical stabilization in the Middle East, well-managed inflation, and controlled interest rates.
Original Source: https://theshillongtimes.com/2024/12/28/fiis-remain-net-investors-in-india-this-year-amid-robust-economy-resilient-market/
Category : NATIONAL,News Alert
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Publish Date: 2024-12-28 14:46:00
