scorecardresearchFPIs remain buyers of Indian equities; invest ₹10,850 crore in just four

FPIs remain buyers of Indian equities; invest 10,850 crore in just four trading sessions

Updated: 07 May 2023, 11:29 AM IST
TL;DR.

  • According to data from the depositories, FPIs invested a net sum of 10,850 crore in Indian equities in the last four trading sessions during May 2-5.

The March investment was mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners.

The March investment was mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners.

(PTI)Foreign portfolio investors (FPIs) continue to be buyers of Indian equities in May and invested 10,850 crore in the last four trading sessions due to the country's stable macroeconomic environment, robust GST collection and better-than-expected corporate quarterly earnings.

This came following a net infusion of 11,630 crore in equities in April and 7,936 crore in March, data available with the depositories showed.

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

Goingforward, the appreciation in the rupee and good fourth-quarter results will aid in increasing capital flows to India,VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

According to data from the depositories, FPIs invested a net sum of 10,850crore in Indian equities in the last four trading sessions during May 2-5.

"FPIs would have been drawn to Indian stocks by the country's stable macroeconomic climate, strong GST collection figures, and better-than-expected corporate results,"Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, said.

In addition, recent market volatility and sporadic corrections, as well as the stability of the global financial system, improved investor mood, thereby triggering inflows, he added.

Geojit's Vijayakumar said India outperformed most markets in April. The principal reason for the outperformance is the sustained buying by FPIs.

On the other hand, FPIs pulled out 2,460 crore from the debt market during the period under review.

In terms of sectors, FPIs made large purchases in financial services and continued buying capital goods in the second half of April. However, they were big sellers in IT.

So far this year, FPIs have taken out 3,430 crore from equities and invested 1,808 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: 07 May 2023, 11:29 AM IST