Foreign investors pile $11 billion into Indian markets in nine months
Subscribe to enjoy similar stories. India surpassed emerging markets peers to again solidify its status as a premier destination for foreign portfolio investors (FPIs), drawing consistent inflows despite bouts of turbulence and concerns over high valuations. Overseas buyers net invested $5.9 billion into domestic stocks this month alone so far, according to data from Bloomberg, attracted by the country’s economic fundamentals and beginning of the rate cut cycle in the US.
By comparison, Indonesia received $1.92 billion, Thailand $1 billion and Malaysia $256 million. South Korea, Taiwan and Brazil recorded net outflows of $5.4 billion, $4.6 billion and $4.7 million, respectively, in the month. In the year so far, India attracted $11 billion of overseas investments, outperforming other emerging markets.
South Korea received $10.7 billion, while Indonesia and Malaysia attracted $3.7 billion and $952 million, respectively, during the period. This was despite the Indian market trading at 25.7 times its earnings compared to Malaysia’s 16.0 times, Vietnam’s 14.8 times and South Korea’s 14.2 times. “While Indian market valuations may seem stretched in the short to medium term, the country's long-term prospects make it a safe haven for global investors," said Kranthi Bathini, director of equity strategy at Mumbai-based WealthMills Securities.
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