Foreign investors infused nearly ₹11,000 crore in domestic equities in the first week of the month owing to resilience of the Indian market and expectations of rate cut in the U.S. Foreign Portfolio Investors (FPIs) have been consistently buying equities since June. Before that, they had pulled out funds to the tune of ₹34,252 crore in April-May. The recent inflows are promising and could continue, supported by India's stable macroeconomic position. However, global factors like U.S. interest rate and geopolitical scenario would continue to be the driving force, Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment Research India, said. However, the elevated valuations are a concern. If the U.S. growth concerns impact global equity markets in the coming days, FPIs are likely to use the opportunity to buy in India, he added. Apart from equities, FPIs invested over ₹7,600 crore in the debt market during the period under review. Sunil Damania, Chief Investment Officer, MojoPMS, said concerns over a potential U.S. recession and China's ongoing economic challenges are critical considerations for investors re-evaluating their allocations. If the risk-off strategy continues to gain traction, emerging markets may experience a slowdown in FPI inflows, he added. (ICE NEW DELHI)

Fonte notizia: Economic Times