Favourable economic indicators and a steady interest rate environment have the potential to draw investments into the banking sector, fostering additional growth and advancement. With the anticipation of interest rates remaining stable, heightened interest is expected in the housing loan sector.
Going forward, FPI response will be crucially determined by the market trend, which, in turn, will be influenced by the state election results, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. If the state election results turn out to be favorable for the ruling dispensation, the market will stage a rally, and overseas investors are unlikely to miss that rally by big selling, he added.
FPIs bought Indian equities worth ₹9,001 crore after selling shares worth ₹24,548 crore in October and ₹14,767 crore in September, data with the depositories showed.
Investors frantically bid up the price of Treasuries, agency, and mortgage debt, sparking the best month since the 1980s and igniting a powerful pan-markets rally in everything from stocks to credit to emerging markets.