So far this calendar year, investment by FPIs in Indian markets has been higher than other emerging markets (EMs). India attracted around $ 6 billion in investment, while markets such as Taiwan and South Korea registered a sell-off by FPIs. In the EM category (excluding China due to unavailability of data), Brazil ranked second in terms of FPI inflows with a capital investment of $ 4.9 billion.
According to BofA Securities, MSCI India’s valuation premium over EM is now at 40 per cent, 3 per cent above the long-term average. Last month, Indian markets attracted over $ 1.9 billion FPI investment. This flow focused on sectors such as industry ($ 684 million), energy ($ 461 million), and descissionary ($ 404 million).
BofA data shows that despite an improvement in sentiment last month, finance ($ 227 million) and real estate ($ 38 million) were sold.
As of the end of January, FPIs in NSE shares maintained a positive stance in IT (+ 0.8 percent), industry (+ 0.4 percent), and telecom (+ 0.2 percent), while finance (- 1.13 percent), energy (-0.34 percent). , And remained negative at Staples (- 0.11 percent). The region-wise analysis of foreign flows has shown considerable differences.
According to analysts, the Indian IT services industry recorded one of its strongest third quarters in FY 2021 as it was helped by rising IT spending and size of deals across all major industries. The scenario has also improved for the BFSI sector which reported weakness in comparison to the major market in 2020.