|
India's strong economic growth is attracting more foreign investors to the domestic equity markets, Principal Secretary to the Prime Minister PK Mishra said, on the sudden return of Foreign Institutional Investors (FIIs) to the country.
In an exclusive conversation with ANI, Mishra said foreign investors have always been present in Indian markets and their investment decisions largely depend on the profit opportunities available across different markets. "The stocks are doing very well. They (FIIs) have always been coming to India. The stock market is such that it depends on different types of situations; wherever they get more profit, they go there. There is nothing very dramatic about it. It is not that they are going there and coming back now. They were always there, and more people are coming because of our high level of economic growth," Mishra said. His remarks come as foreign investors have infused more than Rs 60,000 crore into Indian equities so far in November, following heavy selling in September and October. However, the net selling by foreign investors from Indian markets so far stands at around Rs 2,34,447 crore. The recent buying marks a change in foreign investor activity after sustained outflows in the previous two months. Mishra said the movement of foreign capital should be viewed in the context of changing investment opportunities rather than as a dramatic shift in investor sentiment towards India. Earlier, banking and market expert Ajay Bagga told ANI that India had become an under-invested and underweight market for several global institutional investors after witnessing foreign outflows of more than USD 70 billion over the last two years. He said the recent buying partly reflects a normalisation of foreign investment positions, as global investors begin to increase their exposure to Indian equities. Another important factor supporting the return of foreign investors is the decline in crude oil prices following a partial resolution of the Iran conflict. Bagga said the fragile peace had reduced crude prices, providing relief to India's inflation outlook, current account deficit and currency. The decline in crude prices is an important factor for India, as it provides relief to the country's external and inflation-related concerns, while improving the investment environment. (ANI)
|
