Foreign money returns to India as Latin American markets rise
Foreign investors bought a net 23,544 crore rupees of equities in August. Mining and bank shares rose in two markets, while a third market's country-risk measure fell for the first time in 14 sessions.
Economics & Markets··Midday
Indian equities draw foreign inflows for a second month
Foreign portfolio investors bought a net 23,544 crore rupees of Indian equities in August, following an inflow of 20,200 crore in July. The return came after four months of heavy selling: 49,340 crore left in June, 32,963 crore in May and 60,847 crore in April. Foreign investors therefore remain net sellers for the year. V K Vijayakumar of Geojit Investments linked August's buying to first-quarter earnings and a steadier rupee, and said investors were selecting mid-cap companies despite elevated valuations.[1]
Miners lead in Mexico and banks advance in Brazil
Mexico's IPC gained 1.36 per cent to 65,224 points, while the peso strengthened to 16.895 per dollar. After copper prices rose, Grupo México advanced 6.2 per cent and Industrias Peñoles 5.2 per cent. The index nevertheless remains 8.9 per cent below its 52-week high. In Brazil, the Ibovespa rose 1.85 per cent to 171,031.73 and finished the week about 2.45 per cent higher. Bradesco, Itaú and Banco do Brasil led the session as the real gained 1.04 per cent against the dollar. The Ibovespa remains 13.9 per cent below its 52-week peak.[2], [3]
Argentina's country risk ends a 14-session climb
The country-risk measure fell about 5 per cent to roughly 506 basis points, its first decline in 14 sessions. The equity index gained 1.30 per cent to 2,913,184, remaining below the 3 million-point threshold; its 52-week gain stands at 30.51 per cent. The local currency held near 1,499 per dollar under the central bank's managed crawl. The report noted that declines in supermarket and wholesale sales were milder in July than earlier in the year, but described the relief as fragile.[4]
