Overseas investors have put in a massive Rs 35,109 crore in Indian markets in November so far. Foreign portfolio investors (FPIs) are investing big time as robust corporate earnings and reform measures undertaken by the government to restore investment activities have kept the investors' sentiment buoyant.
FPIs invested a net sum of Rs 29,436 crore into equities and Rs 5,673 crore into the debt segment between November 2-13. A net amount of Rs 35,109 crore was brought in by overseas investors in Indian markets during the period under review. FPIs had pumped a net sum of Rs 22,033 crore in the preceding month.
Citing reasons for investment in November, Arjun Yash Mahajan, head-institutional business, Reliance Securities told PTI, "Indian markets continue to outperform and have continued to offer FPIs better risk reward propositions in terms of corporate earnings recovery and reform measures undertaken by the government to revive investment activities in the country."
Additionally, weaker dollar index and absence of quality value play at reasonable valuations in FPIs' home markets have further given them reason to move allocations to emerging markets like India, Mahajan added.
Going forward, FPIs are expected to remain optimistic on Indian markets, market experts said. They are advised to bet on sectors that are resilient from the prolonged economic downturn, said Mahajan.
"Agriculture in the form of auto exposure, pharma, IT and select private banks are attractive sectors to continue to keep on the radar," he further said.