Asian stocks markets are trading lower in morning trade as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.31% while the Hang Seng is down 0.90%. The Shanghai Composite is down 0.13%. Overnight, the US markets closed flat after volatile trade.

Meanwhile, Indian share markets have opened the day marginally higher. BSE Sensex is trading higher by 63 points and NSE Nifty is trading higher by 23 points. S&P BSE Mid Cap and S&P BSE Small Cap are trading up by 0.4% respectively.

Barring software stocks, all the sectoral indices have opened the day in green with metal stocks and PSU stocks leading the gains. The rupee is trading at 64.50 against the US$.

In news from the economy, Foreign Portfolio Investment (FPI) inflows during the period between January-June 2017 (H12017) stood at nearly US$23 billion into the Indian capital markets, largely driven by several factors, including expectations from the government that it would speed up development and economic reforms.

While, in the first half of 2016, FPIs had invested about US$1.2 billion. According to latest depository data, FPIs in H12017 invested a net US$8.2 billion in equities, while pumped US$14.5 billion in the debt market during the period, translating into a net inflow of US$23 billion.

Starting the year on a negative note, the foreign investors had in January pulled out Rs 34.95 billion from the capital markets on worries about lower prospects of growth in the Indian economy compared to other emerging markets. In addition, impact of change in policies by US President Donald Trump and demonetisation back home were the other contributing factors.

Going forward, there are a few challenges but they are not strong enough to disrupt the current trend. Markets and the rupee are soaring to new high, which offer a good profit booking opportunity for the foreign investors.