Quote on FPI by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
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Below the Quote on FPI by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
"FPI investment in equity is steadily coming down recently with net investment of only Rs 7320 crores in August compared to Rs 32365 crores in July. The fundamental reason for the poor FPI interest is the high valuation in the Indian market. With Nifty now trading at above 20 times estimated FY 25 earnings, India is the most expensive market in the world now. FPIs have opportunities to invest in much cheaper markets and, therefore, their priority is markets other than India. Bulk of the buying that FPIs are doing are through the ‘primary market and others’ category. In the cash market they have been consistent sellers because of the elevated valuations.
FPIs are buying in the debt market mainly because the INR has been stable this year and this stability is expected to continue."
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