Foreign portfolio investors (FPIs) have invested ₹11,500 crore in Indian equities so far this month, largely due to bulk investments from the US-based GQG Partners in the Adani Group companies, PTI reported.
According to the data with the depositories, FPIs invested ₹11,495 crore in Indian equities till March 17. This came after a net outflow of ₹5,294 crore in February and ₹28,852 crore in January. Prior to that, FPIs infused a net amount of ₹11,119 crore in December, added the report, citing data.
Going ahead, FPIs may take a cautious stance in their approach in the coming days following the collapse of the US-based banks – Silicon Valley Bank and Signature Bank – that dented sentiment in the market, it said, quoting experts.
“The inflows in March are inclusive of a bulk investment of ₹15,446 crore made by GQG Partners in the four Adani stocks,” V K Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, was quoted as saying.
However, excluding this investment, FPI activity in equities shows a strong selling undercurrent, said the report
In terms of investing in sectors, FPIs have been consistent buyers only in capital goods. In financial services, FPIs have been alternating between buying and selling in different fortnights, it added.
Since risk-off is the dominant market mood now following the bank failures in the US and fears of contagion, FPIs are unlikely to turn buyers in the near term, Vijayakumar said, as per the report.
Himanshu Srivastava, Associate Director - Manager Research at Morningstar India, according to the report, attributed the latest inflows to better prospects for Indian equities over longer time frames.
Although, like many other countries, India has also been going through a rate hike cycle given high inflation levels, it is still perceived to be relatively better placed with respect to macroeconomic conditions compared with other markets, he noted, it added.
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