FPI Investment: There is a boom in the stock market once again. Investors are again expecting huge returns. Foreign investors have also started returning to the Indian stock market. In the first two weeks of December, foreign institutional investors have invested Rs 22 thousand 766 crores. Due to this, the hope of tremendous growth in the stock market has been established again. The return of investors hoping for a cut in interest rates by the US Central Bank US Federal Reserve, after fleeing the Indian stock market by withdrawing their money, is being seen as a good sign.
Foreign investors sold the most in October
In the month of September, foreign portfolio investment was the highest in nine months at Rs 57,724 crore. But foreign investors sold the highest amount of Rs 94,017 crore in the month of October in history. Even in the month of November, foreign investors sold Rs 21,612 crore. Due to this the Indian stock market fell face down.
Foreign investment is full of ups and downs
Still, foreign investors have not settled towards the Indian stock market, but are in a state of confusion. Because foreign investment in the stock market also depends on factors like American governance, geopolitical scenario and interest rate cuts by federal banks etc. Further, it will depend on the balance sheets of Indian companies in the third quarter and the progress of the country on the economic development front. Because on this basis the stock market will be able to capitalize on the sentiments of the investors and the environment will be ready for foreign investment.
India’s importance as a growth market will remain
Stock market experts believe that due to the immediate circumstances, there may be ups and downs on the foreign investment front, but India’s importance remains as a growth market across the world. The Reserve Bank has also tried to increase the flow of capital in the market by reducing the amount of cash reserves in India. The inflation rate has also increased from 6.21 percent in October to 5.48 percent in November. This has also increased the morale of investors.
Also read:
