scorecardresearchFPI investment hit 9-month high at ₹43,838 crore in May on strong domestic

FPI investment hit 9-month high at 43,838 crore in May on strong domestic macro-outlook, reasonable valuation

Updated: 04 Jun 2023, 12:01 PM IST
TL;DR.

  • FPIs continued the buying stance in June too, and invested 6,490 crore in just two trading sessions of the month, data with the repositories showed.

According to the data, FPIs invested a net sum of  <span class='webrupee'>₹</span>43,838 crore in the Indian equities in the entire month of May.

According to the data, FPIs invested a net sum of 43,838 crore in the Indian equities in the entire month of May.

(PTI) Foreign Portfolio Investors (FPIs) pumped in 43,838 crore in Indian equities in May, the highest level in nine months, supported by strong macroeconomic fundamentals, and reasonable valuations.

FPIs continued the buying stance in June too, and invested 6,490 crore in just two trading sessions of the month, data with the repositories showed.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that inflow by FPIs will continue in the current month since the latest GDP data and high-frequency indicators reflect a robust economy gaining further strength.

According to the data, FPIs invested a net sum of 43,838 crore in the Indian equities in the entire month of May.

This is the highest level of investment by FPIs in the last nine months. Before this, they put in a net sum of 51,204 crore in equities in August 2022, data showed.

This came following a net infusion of 11,630 crore in equities in April and 7,936 crore in March.

The March investment was mainly driven by bulk investment in the Adani Group companies by US-based GQG Partners. However, if one adjusts for the investments of GQG in Adani Group, the net flow was negative.

Moreover, in the first two months of the year, FPIs had pulled out over 34,000 crore.

Himanshu Srivastava, Associate Director - Manager Research at Morningstar India, said the latest net inflows are largely driven by the strong domestic macro-outlook, reasonable valuation of the Indian equities, and a good earning season signifying better growth prospects.

The sustained buying by FPIs has lifted the NSE benchmark index, Nifty, during the period under review.

Interestingly, India attracted the largest investment among all emerging markets, and FPIs were sellers in China.

In terms of sectors, financials, automobiles, telecom, and construction are attracting big investments.

Apart from equities, FPIs invested 3,276 crore in the debt market in May.

So far in 2023, foreign investors have put in 35,748 crore in the Indian equities and 7,471 crore in the debt market.

Article
Foreign portfolio investors (FPIs) have been on a selling spree in the Indian market, exceeding the global financial crisis (GFC) outflow of 2008-09. However, the market benchmark Sensex has not reacted to the FPI selling as it used to in the past. Data from NSDL show that FPIs have sold equities worth 1,41,507 crore in the Indian equities in the financial year 2022 (FY22) so far. Cumulatively, they have withdrawn 1,19,950 crore from the Indian financial market instruments, which includes equities, debt, debt-VRR (voluntary retention route) and hybrid category. The data show, FPIs have sold only equities and bought in debt, debt-VRR and hybrid categories in FY22 so far.
First Published: 04 Jun 2023, 12:01 PM IST