Foreign funds turn bullish on India amid higher earnings
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New Delhi: The intensity of foreign portfolio investor (FPI) selling in the Indian markets slowed down significantly in October, analysts said on Sunday. The shift in the FPI trading strategy is significant and it stems from two factors.
One, the valuation differentials between India and other markets, which were high earlier, had come down significantly in recent weeks following the rally in other markets and consolidation in the Indian market.
“Two, the growth and earnings prospects for India have been revised upward by market experts. The GST cuts and the low interest regime are expected to boost India Inc’s earnings in FY27, which the market will soon start discounting,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
Foreign investors turned buyers in the cash market on the last four trading sessions of the week ended on October 10.
