FPIs remain net buyers of Indian equities at Rs 7,320 crore in August
Investors (FPIs) were net buyers of Indian equities in August, purchasing shares worth Rs 7,320 crore. The total investments by them now stand at Rs 42,886 crore, so far in 2024.
In July, FPIs bought domestic shares worth Rs 32,365 crore while in June, they were net buyers at Rs 26,565 crore after remaining net sellers in April and May when they sold equities worth Rs 8,671 crore and Rs 25,586 crore respectively. In February and March they were net buyers at Rs 1,539 crore and Rs 35,098 crore after starting the year on a negative note in January when they offloaded shares worth Rs 25,744 crore.
On Friday, the foreign institutional investors (FIIs) were net buyers at Rs 5,318.14 crore while the domestic institutional investors (DIIs) were net buyers at Rs 3,198.07 crore.
FPI investment in equity is steadily coming down with net investment in August down from July and the fundamental reason for the fading interest is the high valuation in the Indian market, expert V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.
«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,» Vijayakumar said.
FPIs are buying in the debt market
