New Delhi:
Foreign portfolio investors (FPIs) have infused a net sum of Rs 5,072 crore into the Indian capital markets in October so far amid the government's efforts to revive domestic demand.
In the preceding month, FPIs had invested a net Rs 6,557.8 crore in the domestic capital markets (both equity and debt). This came following net outflows in July and August.
As per the latest depositories data, foreign investors put in a net sum of Rs 4,970 crore in equities and a net Rs 102 crore in the debt market during October 1-18, taking the cumulative net investment to Rs 5,072 crore.
Reacting to the inflow of funds in October, head of research at Samco Securities, Umesh Mehta said, "The worst seems to be behind us and markets have started to discount the forward looking Budget and revival of consumption."
"The government's efforts to revamp domestic demand by increasing DA, cutting corporate taxes, recapitalisation of PSU banks, strategic disinvestments have all contributed in changing FPIs' stance," he added.
Arun Mantri, technical and derivative analyst at Karvy Stock Broking, said that on the international front, "expectations of a US and China partial trade deal and expectations of positive outcome from negotiations have triggered a risk-on period."
Regarding the future course of FPI flows, Harsh Jain, co-founder and COO, Groww, said, "The momentum is expected to continue in the long term as India is a very attractive investment destination with sound fundamentals. The markets are extending gains in the hopes of better quarterly results. Brexit deal, if successful, will bring more confidence to the global investors' sentiments and help boost investment into India.
Meanwhile,nine of the 10 most valued Indian companies together added a whopping Rs 1.47 trillion in market valuation last week, with RIL and TCS grabbing the limelight with the maximum gains.
Barring Infosys, rest nine companies witnessed addition in their market capitalisation (m-cap) for the week ended Friday.
RIL's valuation zoomed Rs 39,876.44 crore to Rs 8,97,179.47 crore.
Reliance Industries (RIL) on Friday added another feather to its cap by becoming the first Indian firm to hit the Rs 9 trillion market valuation mark in intra-day trade.
The m-cap of TCS soared Rs 26,379.27 crore to Rs 7,71,996.87 crore and that of HUL jumped Rs 21,962.02 crore to Rs 4,55,952.72 crore.
HDFC Bank's valuation climbed Rs 16,767.89 crore to Rs 6,72,466.30 crore and that of HDFC advanced Rs 14,728.66 crore to Rs 3,61,801.97 crore.