IGI Logo

Below the Quote on FPI from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"FPIs invested Rs 12262 crores in August. This figure includes bulk deals and investment through the primary market. In the cash market FPIs were sellers after three months of sustained buying. In August FPIs sold stocks for Rs 20620 crores in the cash market. Rising bond yields in the US and strong dollar index are negative for capital flows. This is the primary reason why FPIs have been sellers in the cash market. FPIs have been sellers in most emerging markets in August mainly due to this double whammy of rising dollar and rising bond yields. Profit booking in financials also contributed to FPI selling.
Regarding sector specific investments, FPIs have been consistently buying in capital goods. Recently, they have been buyers in health care, too. The latest jobs report from the U.S. indicates that the U.S. economy is slowing and, therefore, the Fed might not raise rates again. This can bring down the US bond yields and the dollar index. If this scenario unfolds, FPIs may again turn buyers in India."

Above views are of the author and not of the website kindly read disclaimer