16-12-2023 05:27 PM | Source: Geojit Financial Services Ltd
Quote on FPI : This triggered a crash in U.S. bond yields with the 10-year going below 4percent says Dr. V K Vijayakumar, Geojit Financial Services

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

 

"A major development in December, particularly after the state election results, is FPIs turning buyers. This trend has intensified after the Fed signalled the end of the tightening cycle and indicated possibly three rate cuts in 2024. This triggered a crash in U.S. bond yields with the 10-year going below 4percent. FPIs heavily bought stocks in banking and IT segments. FPI buying is likely to sustain, going forward.

India is one of the top investment destinations of FPIs. There is a near consensus now in the global investing community that India has the best prospects among the emerging economies for sustained growth for many years to come. This growth has the potential to create phenomenal wealth through the stock market. FPIs are investing to benefit from this potential wealth creation.

After the inclusion of India in the JPMorgan Emerging Market Bond Index, there is high enthusiasm to invest in Indian government bonds. Some institutions may have already started buying. Now that the U.S. bond yields have corrected significantly, Indian bonds will attract more investment."

 

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