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The year 2023 has witnessed huge <keyword id="6355120" type="General" weightage="20" keywordseo="investment" source="Orion">investment</keyword> by FPIs thanks to the sharp uptick in flows in December, says V K Vijayakumar, Chief Investment Strategist at Geojit <keyword id="6354241" type="General" weightage="20" keywordseo="financial-services" source="Orion">Financial Services</keyword>. <keyword id="725142" type="General" weightage="20" keywordseo="fpi" source="Orion">FPI</keyword> inflows which were negative in the previous 3 months have sharply turned positive in December with total buying of Rs Rs 66134 crores. This figure includes the buying through stock exchanges and investment in the primary market. The total FPI inflows in 2023 stand at Rs 171106 crores, he said. The steady decline in <keyword id="476164" type="General" weightage="20" keywordseo="us-bond-yields" source="Orion">US bond yields</keyword> has caused this sudden change in the strategy of FPIs. In December, FPIs were big buyers in financial services which explains the resilience of this segment in December. FPIs also bought in sectors like <keyword id="6425437" type="General" weightage="20" keywordseo="autos" source="Orion">autos</keyword>, <keyword id="81793" type="General" weightage="20" keywordseo="capital-goods" source="Orion">capital goods</keyword> and telecom. Since 2024 is expected to witness further declines in U.S. interest rates, FPIs are likely to increase their purchases in 2024 too, particularly in the early months of 2024 in the run up to the General elections, he said.

Huge investments by FPIs in 2023 at Rs 1.71 lakh crore

<keyword id="725142" type="General" weightage="20" keywordseo="fpi" source="Orion">FPI</keyword> <keyword id="48677" type="General" weightage="20" keywordseo="inflows" source="Orion">inflows</keyword>, which were negative in the previous three months, have sharply turned positive in December, says V.K. Vijayakumar, Chief Investment Strategist at Geojit <keyword id="6354241" type="General" weightage="20" keywordseo="financial-services" source="Orion">Financial Services</keyword>. Total FPI inflows in December through 22nd is Rs 57,313 crore including the buying through stock exchanges and primary market. The steady decline in the <keyword id="476164" type="General" weightage="20" keywordseo="us-bond-yields" source="Orion">US bond yields</keyword> have caused this sudden change in the strategy of FPIs, he said. FPIs were big buyers in financial services. This explains the resilience of this segment in recent days. FPIs also bought in sectors like <keyword id="6425437" type="General" weightage="20" keywordseo="autos" source="Orion">autos</keyword>, <keyword id="81793" type="General" weightage="20" keywordseo="capital-goods" source="Orion">capital goods</keyword> and telecom, he said. Since 2024 is expected to witness further declines in the US interest rates, FPIs are likely to increase their purchases in 2024 too.

FPIs big buyers in financial services

Markets regulator <keyword id="35210" type="General" weightage="80" keywordseo="sebi" source="Orion">SEBI</keyword> has simplified the procedural requirements for onboarding of <keyword id="6389755" type="General" weightage="50" keywordseo="foreign-portfolio-investors" source="Orion">Foreign Portfolio Investors</keyword> (<keyword id="2005494" type="General" weightage="100" keywordseo="fpis" source="Orion">FPIs</keyword>) in a bid to facilitate ease of doing business and to reduce the time taken for their registration. The regulator allowed designated depository participants (DDPs) to grant <keyword id="725142" type="General" weightage="80" keywordseo="fpi" source="Orion">FPI</keyword> registration on the basis of scanned copies of application forms and supporting documents, according to a circular issued on Monday. Granting of registration on the basis of scanned copies has been allowed but trading can only be activated following the verification of the physical documents, it said. At present, applicants are required to send both scanned copies as well as physical documents of application forms and supporting documents to the DDPs for obtaining the FPI registration. In addition, the <keyword id="63783" type="General" weightage="50" keywordseo="securities-and-exchange-board" source="Orion">Securities and Exchange Board</keyword> of India (SEBI) has allowed DDPs to accept the use of digital signatures by FPIs for the execution of registration-related documents. Besides, the regulator has permitted verification of <keyword id="61610" type="General" weightage="50" keywordseo="pan" source="Orion">PAN</keyword> by DDPs through the Common Application Form (CAF) module available on the websites of the depositories. Currently, DDPs can verify the PAN only after receiving a hard copy of the PAN from the applicant. In a bid to reduce the physical movement of documents and the time taken for registration, SEBI has allowed authorized bank officials to use the SWIFT mechanism for certification of copies of original documents submitted by FPIs, it said. These moves are aimed at easing the onboarding process of FPIs and reducing the time taken for granting registration as well as opening of demat, trading and bank accounts of FPIs, the SEBI said. For operational convenience, SEBI said in case an FPI applicant belongs to an existing FPI investor group, it may submit its unique FPI investor group ID in the CAF, in lieu of providing complete details of all group constituents. In case the applicant wants to club additional FPIs (apart from itself) in such a unique investor group ID, the FPI only needs to provide details of such additional FPIs, along with the investor group ID, it said. Currently, an FPI applicant, at the time of registration, is required to provide details of FPIs with whom it shares ownership of more than 50 percent or common control. Depositories in turn generate a unique FPI investor group ID for identifying each such FPI investor group. The circular, which will be applicable with immediate effect, came after SEBI's board in its meeting in December 2022 approved the simplification of certain procedural requirements for on boarding of FPIs. Earlier this month, SEBI made stringent norms for FPIs asking them to disclose any material change in their structure and common ownership within seven working days. With regard to new FPI registrations, the regulator can ask them for any additional documents which may be required. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/sc-dismisses-customs-plea-claiming-overvaluation-in-import-of-capital-goods-by-adani/articleshow/99057735.cms">SC dismisses custom's plea claiming overvaluation in import of capital goods by Adani</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-covid-cases-show-a-slight-drop-with-only-1539-new-infections-and-four-deaths-in-the-last-24-hours/articleshow/99057573.cms">India's Covid cases show a slight drop, with only 1,539 new infections and four deaths in the last 24 hours</a>

Market regulator SEBI eases FPI onboarding process

<ul><li>Ten years ago markets were completely driven by FPIs but today the situation has changed, says <keyword id="5500681" type="General" weightage="80" keywordseo="v-s-sundaresan" source="Orion">V S Sundaresan</keyword>, executive director at SEBI. </li><li>The SEBI director believes that <keyword id="6416579" type="General" weightage="20" keywordseo="retail-investors" source="Orion">retail investors</keyword> are confident in Indian markets and enough to hold the markets strong despite <keyword id="16607640" type="General" weightage="20" keywordseo="fii-exits" source="Orion">FII exits</keyword>. </li><li>Lack of investor awareness, regulatory overreach and litigant mindset are weaknesses in our markets, said the SEBI official. </li></ul>A sell off by foreign institutional investors (FIIs) no longer impacts Indian equity markets like it used to a decade ago, said V S Sundaresan, executive director at Securities and Exchange Board of India (SEBI). He says that retail participation has become more important in the home market. “Ten years back, markets were completely driven by FPIs but today the situation has changed. Nobody is bothered if FPIs are putting or pulling money. It does not affect the market in any way and they are only now for headlines,” said Sundaresan at 14th Capital Market Summit on Wednesday. FII exits have been making headlines especially since December last year, while impacting markets and inducing volatility. In January, FIIs sold Indian equities worth ₹41,464 crore and in February, so far, they have sold ₹1,041 crore equities. As a result, Sensex has dropped over 2%, and Indian markets have been underperforming compared to others in China and Hong Kong. Retail participation balances flows in the home markets The SEBI director believes that retail investors are confident in Indian markets, and that’s enough to hold the markets strong despite FII exits. “Participation by retail investors has given fillip to this market that can do with or without FPIs. We should be proud of this. This clearly shows there is a good progressing capital formation. This is definitely proving that the savings potential of India is being channeled into capital markets. Capital markets are having enough support from non-FPIs so that markets are balanced,” added Sundaresan. He added that Indian markets are stable with considerably lower volatility compared to other markets. “Despite economic slowdown, increasing interest rates, we have a resilient market,” he said. He added that there is a lack of investor awareness, as new investors are incurring hefty losses in derivatives markets. “Data shows that 9 out of 10 are losing money in options in F&amp;O markets as everybody thinks they can play in options markets. There is a lot of scope for investor education,” said Sundaresan. Regulatory overreach, rising litigations are market weaknesses Lack of investor awareness, regulatory overreach and litigant mindset are weaknesses in our markets, said the SEBI official. The cost of compliance has increased substantially with non-compliances leading to a rise in the number of litigations. For which, he says there is a need to increase self governance. He cited the example of the government’s AGR (adjusted gross revenue) based revenue sharing model with the telecom players wherein the companies are unable to pay the dues, which eventually increases government’s stake. The government recently converted the interest on AGR dues that <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-shares-hit-25-upper-circuit-after-govt-agrees-to-convert-16133-cr-dues-into-equity/articleshow/97643006.cms">Vodafone owes, into equity</a>. Instead of litigations he said there should be self corrective measures wherein disputes can go for settlements instead of choosing legal battles, which only leads to waste of money, time and resources.

Sell off by FIIs does not impact markets; retail participation is more important, says SEBI executive director

<ul><li>Foreign portfolio investors owned $10.5 billion worth of shares of Indian insurance companies at the end of November 2019, up from just about a billion dollars at the end of October 2018.</li><li>Losing favour with the investors are Indian tech stocks like TCS, Wipro and Mindtree where prospects are looking bleak due to slower business and shrinking margins.</li><li>Private insurance players like Bajaj Allianz Life, Kotak Life, and Tata AIA Life clocked a 25.9% growth in <keyword id="168318" type="PERSON" weightage="20" keywordseo="insurance-premium">insurance premium</keyword> in November alone</li></ul>Foreign portfolio investors (FPI) ⁠— foreign investors who invest in shares and bonds ⁠— have been net buyers in the Indian market for three straight months at the end of November 2019, pumping in a total of $3.14 billion last month alone. More than half of that money has gone into buying shares in the banking and financial services industry. The country’s insurance companies have received the lion’s share of the inflows. At the end of October 2018, foreign investors had a billion dollars invested in Indian insurance stocks. At the end of November 2019, the exposure stands at over $10.5 billion, according to a report from Edelweiss Alternative Research. A lot of that money has come from the sale of technology stocks. 
 
 
 
 
 
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 The foreign investors’ bet on Indian insurance companies seems to be the right decision. The business growth for insurance majors spiked in November 2019. Private players like Bajaj Allianz Life, Kotak Life, and Tata AIA Life clocked a 25.9% growth in insurance premium in November alone, according to a research report from Emkay Financial Services. If someone waited for the data to buy these stocks, they had already missed a big bull run. 
 
 
 
 
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 “The market is extremely positive about the insurance sector, because growth here has been extremely strong over the next 10-20 years. On paper, these stocks may look extremely highly valued, but you need to look at them in the light of an extremely long growth runway that lies ahead,” Srinivasan Subramanian, MD for Investment Banking at Axis Capital, told a television channel ET NOW. 
 
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 Here’s why foreign investors are pulling money out of IT The prospect for India’s tech stocks is looking bleak. The business is slower and the margin is shrinking, with the exception of Infosys. <table style="width: 281pt;"> </colgroup> <tbody><tr> <td class="xl65" style="height:15.0pt;width:134pt">Company</td> <td class="xl69" style="border-left-width: initial; border-left-style: none; width: 147pt;">Margin compression</td> </tr> <tr> <td class="xl66" style="height: 15pt; border-top-width: initial; border-top-style: none;">TCS</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-57 basis points</td> </tr> <tr> <td class="xl66" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tech Mahindra</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-40 basis points</td> </tr> <tr> <td class="xl66" style="height: 15pt; border-top-width: initial; border-top-style: none;">Mindtree</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-89 basis points</td> </tr> <tr> <td class="xl66" style="height: 15pt; border-top-width: initial; border-top-style: none;">L&amp;T Tech</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-26 basis points</td> </tr> <tr> <td class="xl66" style="height: 15pt; border-top-width: initial; border-top-style: none;">Cognizant</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-34 basis points</td> </tr> <tr> <td class="xl67" style="height: 15.75pt; border-top-width: initial; border-top-style: none;">Infosys </td> <td class="xl71" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">+21 basis points</td> </tr></tbody></table>Source: Investec Securities The troubles are far from over. “We continue to expect continued pressures on revenue leading to decelerating revenue growth and PE (price to earnings) multiple contraction driven by weakness in BFS (banking and financial services) and retail. Amongst Tier-1s, TCS saw the biggest consensus EPS downgrade while Mindtree saw the biggest downgrade among Tier-2s in the last 3 months,” Investec Securities said in its December 4 report. <table style="width: 159pt;"> </colgroup> <tbody><tr> <td class="xl69" style="height:15.0pt;width:74pt">Stock</td> <td class="xl70" style="border-left-width: initial; border-left-style: none; width: 85pt;">One year Change</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">HCL Tech</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">13.01%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tech Mahindra</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">6.97%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">TCS</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">6.17%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Infosys </td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.74%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Wipro</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-2.39%</td> </tr> <tr> <td class="xl67" style="height: 15.75pt; border-top-width: initial; border-top-style: none;">Mindtree</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-11.98%</td> </tr></tbody></table> SEE ALSO: <a href="https://www.businessinsider.in/personal-finance/bharat-bond-etf-launch-is-the-best-tax-saving-plan-learn-how-to-buy-and-save-taxes/articleshow/72484444.cms" data-type="tilCustomLink" target="_blank">The best thing about Bharat Bond ETF is the tax benefit— especially for those in the highest income bracket</a> <a href="https://www.businessinsider.in/stock-market/news/boris-johnson-is-not-the-only-one-celebrating-a-possible-historic-majority-for-uk-conservatives-a-bunch-of-indian-stocks-are-thrilled-too/articleshow/72501071.cms" data-type="tilCustomLink" target="_blank">Boris Johnson is not the only one celebrating a historic majority for UK conservatives— a bunch of Indian stocks are thrilled too</a>

The amount of Indian insurance stocks foreign investors hold has grown ten-fold in just about a year

<ul><li>The <keyword id="91748" type="ORGANIZATION" weightage="20" keywordseo="Indian-rupee">Indian rupee</keyword> rose by ₹0.57 yesterday to close at ₹68.53 against the US <keyword id="35208" type="ORGANIZATION" weightage="20" keywordseo="dollar">dollar</keyword> - its highest level since early August 2018. </li><li>This performance is largely due to a surge in foreign fund inflows and a narrowing of India’s <keyword id="113688" type="PERSON" weightage="20" keywordseo="trade-deficit">trade deficit</keyword> - the latter of which fell 22% to $9.6 billion in February. </li><li>Foreign portfolio investors have invested over ₹220 billion in India’s stock markets since the beginning of March, reversing a run of foreign investment outflows. </li></ul>The Indian rupee currently stands at at ₹68.52 against the US dollar - its highest level since early August 2018. It recorded a ₹0.57 gain yesterday to close at ₹68.53. This caps a ₹1.61 rise for the rupee against the US dollar in the last six trading sessions. The stellar run is largely due to a surge in foreign fund inflows and a narrowing of India’s trade deficit - the latter of which<a href="https://www.business-standard.com/article/news-cm/india-s-trade-deficit-narrows-to-17-months-low-of-us-9-6-billion-in-february-2019-119031500959_1.html"> fell 22% to $9.6 billion </a>in February owing to a rise in exports and a reduction in petroleum and gold imports. Foreign portfolio investors have invested over <a href="https://www.business-standard.com/article/markets/foreign-portfolio-investors-inflows-set-for-highest-level-since-march-2017-119031801003_1.html">₹220 billion</a> in India’s stockmarkets since the beginning of March, reversing a long run of foreign investment outflows. This is largely a result of a pause in rate increases by the US Federal Reserve, which has caused investors to reroute their money to markets where they can achieve a higher return, as well as the higher possibility of the Modi government’s re-election. In the wake of the Pulwama attacks and ensuing airstrikes, there has been a groundswell of national fervour and support for the ruling administration. In fact, <a href="https://www.businessinsider.in/is-indias-2019-election-really-a-foregone-conclusion/articleshow/68423465.cms">most opinion polls</a> point to a comfortable re-election for Modi. This portends policy stability and continuity - which will be a huge plus for <keyword id="58959" type="ORGANIZATION" weightage="20" keywordseo="Foreign-investors">foreign investors</keyword>. The rupee had a solid run in the last two months of 2018 - even recording its <a href="https://www.businessinsider.in/the-indian-rupee-just-clocked-its-highest-one-day-gain-since-2013-as-global-oil-prices-plummeted-to-a-yearly-low/articleshow/67158268.cms">highest one-day gain</a> since 2013 in mid-December. However, this was largely driven by a decline in oil prices, which fell to yearly lows excess production by a number of countries like Saudi Arabia, the US and Russia and <a href="https://www.businessinsider.in/oil-prices-are-falling-and-thats-great-news-for-the-indian-rupee/articleshow/66768210.cms">continued exports from Iran</a>. This time around, oil prices have been on <a href="https://oilprice.com/oil-price-charts/45">an upswing</a> since the start of the year. RBI intervention A stronger rupee, while beneficial for importers, does not bode well for exporters as it translates into lesser foreign-currency denominated returns. The Reserve Bank of India (RBI) is implementing a currency-swap programme to prevent a sharp appreciation of the Indian rupee. On March 26th, the central bank will conduct a dollar/rupee buy-sell-swap auction wherein it will buy dollars and sell rupees to the tune <a href="https://indianexpress.com/article/business/banking-and-finance/5-billion-currency-swap-window-will-push-down-rates-on-high-rupee-liquidity-5631172/">of $5 billion</a>. This will also increase liquidity in markets and keep interest rates subdued as bond yields decline. SEE ALSO: <a href="https://www.businessinsider.in/the-indian-rupee-just-clocked-its-highest-one-day-gain-since-2013-as-global-oil-prices-plummeted-to-a-yearly-low/articleshow/67158268.cms">The Indian rupee just clocked its highest one-day gain since 2013 as global oil prices plummeted to a yearly low</a> <a href="https://www.businessinsider.in/oil-prices-are-falling-and-thats-great-news-for-the-indian-rupee/articleshow/66768210.cms">Oil prices are falling and that’s great news for the Indian Rupee</a>

You Searched For "FPI december" and got 6 results

Huge investments by FPIs in 2023 at Rs 1.71 lakh crore

IANS

FPIs big buyers in financial services

IANS

Market regulator SEBI eases FPI onboarding process

PTI

Sell off by FIIs does not impact markets; retail participation is more important, says SEBI executive director

Bhakti Makwana

The amount of Indian insurance stocks foreign investors hold has grown ten-fold in just about a year

Sriram Iyer

The rupee just clocked a seven-month high amid a surge in buying from foreign investors

Dilsher Dhillon

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