Net REIT buyers at Rs 16,305 crore so far in September, Auto News, ET Auto
NEW DELHI: Foreign portfolio investors (REITs) have remained net buyers in Indian markets so far in September by investing a net sum of Rs 16,305 crore.
According to data from custodians, foreign investors invested Rs 11,287 crore in stocks and rupee 5,018 crore in the debt segment on a net basis between September 1 and September 17.
During this period, the total net investment stood at Rs 16,305 crore.
In August, the REIT’s investment stood at Rs 16,459 crore. Himanshu Srivastava, Associate Director – Research, Morningstar India noted that investing in Indian stocks has been volatile for some time.
“However, the continuation of the rally in Indian stock markets would have been difficult for REITs to ignore and they would have chosen to be a part of it rather than miss it,” he said.
In addition, India continues to be an important and competitive investment destination from a long-term perspective, Srivastava added.
REITs have shown interest in segments like hotels and travel since those segments started to do well, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services.
He added that some profit taking is seen in segments like metals and insurance, which had appreciated strongly.
Shrikant Chouhan, executive vice president of technical equity research at Kotak Securities, said all emerging markets have seen REIT inflows in September 2021 to date.
“The inflows to Taiwan, South Korea, Thailand, Indonesia and the Philippines are positive at $ 2,597 million, $ 535 million, $ 290 million, $ 162 million and $ 71 million, respectively,” a- he added.
Chouhan said REIT inflows into Indian stock markets may decline following the Federal Reserve’s quantitative easing.
“In general, the US Federal Reserve’s rate hike leads to the exit of REITs from emerging markets such as India which are considered riskier than developed economies,” he said.