Last update: March 19, 2023, 11:29 AM IST
Foreign portfolio investors (FPIs) invested Rs 11,495 crore in Indian stocks as of March 17.
In terms of investing in sectors, FPIs have been consistent buyers of only capital goods
Overseas investors have invested Rs 11,500 crore in Indian equities so far this month, mainly spurred by US-based GQG Partners’ bulk investment in Adani Group companies. Experts say FPIs could adopt a cautious stance in the coming days after the collapse of US-based banks – Silicon Valley Bank and Signature Bank – which hurt market sentiment.
According to custodian data, Foreign Portfolio Investors (FPIs) invested Rs 11,495 crore in Indian stocks as of March 17.
This comes after a net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January. Previously, FPIs infused a net amount of Rs 11,119 crore in December, the data showed.
“This (inflow in March) includes the major investment of Rs 15,446 crore by GQG in the four Adani stocks,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
That being said, FPI activity in stocks represents a strong sell undercurrent.
In calendar year 2023, FPIs have sold Rs 22,651 crore of shares.
Himanshu Srivastava, Associate Director – Manager Research at Morningstar India, attributed the recent inflows to improving prospects for Indian equities over longer timeframes.
Although India, like many other countries, has also gone through a rate hike cycle given high inflation rates, it is still perceived as relatively better positioned relative to other markets in terms of macroeconomic conditions.
On the other hand, FPIs withdrew Rs 2,550 crore from the bond markets during the period.
In terms of investing in sectors, FPIs have been consistent buyers of only capital goods.
In financial services, FPIs alternated between buying and selling in two weeks. With risk aversion now the dominant market sentiment following the US bank collapses and contagion fears, FPIs are unlikely to become buyers any time soon, said Vijayakumar of Geojit Financial Services.
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(This article was not edited by News18 staff and is published by a syndicated news outlet feed.)
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