New Delhi, April 11 (IANS): Foreign Portfolio Investors (FPIs) continued to pump in cash into the Indian equities space for the week ended April 10, which led the markets to soar 2.2 percent.
The FPIs remained net buyers in the Indian equities market despite the fact that the Indian apex bank did not reduce policy rates in its first monetary review of the economy for 2015-16.
For the week ended April 10, the FPIs bought stocks worth Rs.2,391.82 crore or $383.45 million, according to the data with the National Securities Depository Limited (NSDL).
However, the foreign investors sold stocks worth Rs.266.95 crore or $42.83 million in the week under review.
During the previous week ended April 1, the FPIs had invested in stocks worth Rs.265.29 crore or $42.35 million (March 30-31). In the previous week the foreign investors had sold stocks worth Rs.12.57 crore or $2.01 million.
The Foreign Institutional Investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.
Analysts said that the foreign investors continued interest in the Indian equities market mirrored the positive sentiment of international credit ratings agencies on India.
Moody's revised India's sovereign ratings outlook to "positive" from "stable." Another ratings agency - Fitch - also reaffirmed its stable outlook on India.
The think-tank of the rich nations, the Organisation for Economic Cooperation and Development (OECD), also endorsed India's economic expansion projections.
"The foreign investors will be interested in India till such times that they see positive movement by the government on the reforms front and supportive (industrial and inflation) data that might lead to a rate cut," said Dipen Shah, head of private client group research, Kotak Securities.
"In the coming week the positive industrial number, expectations over March inflation data and the fourth quarter results season will determine the foreign investors interest in India," Shah told IANS
According to Devendra Nevgi, chief executive of ZyFin Advisors, the country remains an attractive destination for the foreign investors due to a stable political environment, continued economic reforms and rising growth projections.
"Major concern in the coming week will be the fourth quarter results. Although the expectations are much muted the future earning guidance will be keenly followed by the foreign investors," Nevgi said.
The triggers for the FPIs in the coming week will be the positive data on India's factory output that indicated the highest growth yet in nine months at 5 percent.
The data had come after the closing bell Friday. India's factory output also mirrored the positive sentiment by showing an expansion of 5 percent in February over a 2.6 percent rise in January.
Analysts pointed out that apart from the healthy industrial output figures for February, the expectations from the season's earnings and the March CPI (consumer price index) data to be released on Monday will also be the key triggers for the coming week.
The CPI-based inflation rose to 5.37 percent for February, from 5.19 percent in January and 4.28 percent in December 2014.
The benchmark, 30-scrip S&P Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) gained 619 points or 2.19 percent during the week ended April 10 to end at 28,879.38 points, against the previous week's close of 28,879.38 points.
Similarly, at the National Stock Exchange (NSE), the broader, 50-share CNX Nifty made gains of 2.26 percent or 194.1 points.