New Delhi
Despite Foreign Portfolio Investors (FPIs) selling off stocks in August, experts are optimistic about the market’s performance in the upcoming week, starting Monday. Analysts believe that favorable global trends and key domestic economic data, including the HSBC India Manufacturing PMI and HSBC India Services PMI, will drive the market.
So far in August, FPIs have sold equities worth Rs 21,201 crore. In the past week alone, they offloaded Rs 7,769.73 crore, leading to a negative net investment for the month. This has raised concerns about a shift in investment patterns.
Ajay Bagga, a market expert, acknowledges the concern over FPI selling, which has withdrawn nearly USD 2.8 billion from Indian equities this month. Despite this, he remains positive about the Indian market’s prospects, expecting an upward movement in the near term.
While foreign investors have been net sellers, domestic institutional investors have been net buyers, compensating for the outflows. According to NSE data, domestic investors have made net purchases of Rs 34,060.09 crore in August.
The benchmark indices ended the previous week on a strong note, with the Sensex gaining 1,330.96 points (1.68%) to close at 80,436.85 and the Nifty 50 rising by 397.40 points (1.65%) to finish at 24,541.15.
Market analysts anticipate that the positive reaction to recent US economic data and a potential Federal Reserve rate cut will support market performance. As global markets recover, domestic attention will focus on institutional flows and upcoming economic indicators.
