InvestorQ : Have foreign investors been buyers or sellers since Feb, 2019 and how do you see the foreign flows in the coming months?
Anu Biswas made post

Have foreign investors been buyers or sellers since Feb, 2019 and how do you see the foreign flows in the coming months?

Answer
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Neelam Naik answered.
1 year ago


FPIs infused a total of Rs.9031 crore ($1.3 billion) into the Indian markets with the tide turning clearly in favour of buying after the exit poll outcome. Nearly Rs.8000 crore came into equities while only the balance came into debt. Foreign investors are playing the risk off game and prefer to stay away from emerging market bonds as the currency situation is still not very clear and could turn precarious if the oil price goes up sharply or the trade war worsens. Of course, this is much lower than the Rs.45,980 crore that the FPIs had infused in the month of April, but the good thing is that FPIs have been net buyers in each month since February.

Going ahead, you could see FPI flows predicating on how the trade war plays. FPIs have also been wary about how the liquidity situation will be handled in India but with the NDA government coming back to power, the FPIs would heave a sigh of relief. You can say that FPIs will continue to be gradual buyers in India, although you may not get to see months like April very frequently.