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Himanshu Srivastava, associate director, manager research, Morningstar Investment Research India, said future FPI investments in the Indian market will depend on geopolitical conditions and global events such as interest rate fluctuations. He said that on the domestic front, FPI will keep an eye on inflation trends, quarterly results of companies and demand during the festive season.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the continued selling trend of FPIs is unlikely to change any time soon. Due to China's stimulus measures, FPIs are turning to the Chinese market. Moreover, due to high valuations in India, FPIs remain sellers.
According to the data, during this period FPIs withdrew Rs 5008 crore from bonds through the general limit and invested Rs 410 crore through the voluntary retention route (VRR). So far this year, FPIs have invested Rs 14,820 crore in equity and Rs 1.05 lakh crore in debt or bond markets.
FPI invested Rs 57,724 crore in September
Earlier in September, FPIs had invested Rs 57,724 crore in the Indian stock market, which is the highest in the last nine months. According to depository data, foreign portfolio investors have remained stable investors since June. They definitely withdrew Rs 34,252 crore in April-May. FPIs withdrew a net Rs 85,790 crore from the Indian stock market between October 1 and 25. Market sentiments were affected due to continuous selling by FPIs, due to which NSE's Nifty fell by eight per cent from its peak.