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NEW DELHI: Foreign Portfolio Investors infused Rs 10, 980 crore in the first week of September, according to the National Securities Depository Limited (NSDL). However, they sold equities worth Rs 904.19 crore on Friday.
The change in sentiment was primarily due to the expiration of the Securities and Exchange Board of India’s (Sebi) deadline for unregistered FPIs to disclose their beneficial owners on Friday.
The market regulator has mandated that all foreign investors provide details of their ultimate beneficial owners by this deadline, and failure to comply would result in disqualification from investing in Indian markets. Additionally, non-compliant FPIs would be required to liquidate their existing investments.
“The domestic market was in panic due to the SEBI’s deadline over FIIs disclosure norm, however, this is not expected to impact India’s lucrativeness to FIIs in the long-term. Coupled with a lack of new market catalysts and elevated valuations, a muted trend is expected to continue in the short term,” said
Vinod Nair, head of research at Geojit Financial Services.
The foreign investment declined to Rs 7,322 crore in the month of August, the lowest monthly investment observed over the past three months while FPIs in July infused Rs 32,359 crore, as per the data provided by the National Securities Depository Limited (NSDL).
The data further reveals that foreign investors majorly remained net seller throughout August. However, they made a record net investment of Rs 23,585.92 crore during the final week of August (August 26 to 30), resulting in a positive net investment.
The change in sentiment was primarily due to the expiration of the Securities and Exchange Board of India’s (Sebi) deadline for unregistered FPIs to disclose their beneficial owners on Friday.
The market regulator has mandated that all foreign investors provide details of their ultimate beneficial owners by this deadline, and failure to comply would result in disqualification from investing in Indian markets. Additionally, non-compliant FPIs would be required to liquidate their existing investments.
“The domestic market was in panic due to the SEBI’s deadline over FIIs disclosure norm, however, this is not expected to impact India’s lucrativeness to FIIs in the long-term. Coupled with a lack of new market catalysts and elevated valuations, a muted trend is expected to continue in the short term,” said
Vinod Nair, head of research at Geojit Financial Services.
The foreign investment declined to Rs 7,322 crore in the month of August, the lowest monthly investment observed over the past three months while FPIs in July infused Rs 32,359 crore, as per the data provided by the National Securities Depository Limited (NSDL).
The data further reveals that foreign investors majorly remained net seller throughout August. However, they made a record net investment of Rs 23,585.92 crore during the final week of August (August 26 to 30), resulting in a positive net investment.