So far this year, FPIs have pulled out Rs 3,430 crore from equities and invested Rs 1,808 crore in the debt market. (Representational Image)
The March investment was mainly driven by US-based GQG Partners’ bulk investment in Adani group companies.
Foreign portfolio investors (FPIs) remained buyers of Indian equities in May and pumped in Rs 10,850 crore in the last four trading sessions on the back of country’s stable macroeconomic environment, strong GST collections and better-than-expected corporate quarterly earnings.
This came after a net infusion of Rs 11,630 crore in equities in April and Rs 7,936 crore in March, data available with depositories showed.
The March investment was mainly driven by US-based GQG Partners’ bulk investment in Adani group companies. However, if one adjusts for GQG’s investment in the Adani Group, the net inflow is negative.
Going forward, strengthening rupee and good fourth quarter results will help increase capital inflows into India, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
According to depository data, FPIs invested a net Rs 10,850 crore in Indian equities in the last four trading sessions during May 2-5.
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said, “FPIs would have been attracted to Indian stocks due to the country’s stable macroeconomic environment, strong GST collection data and better-than-expected corporate results.”
In addition, recent market volatility and sporadic correction, as well as stability of the global financial system improved investor sentiment, leading to an uptick in inflows.
Geojit’s Vijayakumar said India outperformed most markets in April. The main reason for the better performance is the continued buying by FPIs.
On the other hand, FPIs pulled out Rs 2,460 crore from the debt market during the period under review.
In terms of sectors, FPIs made large purchases in financial services and capital goods in the second half of April. However, he was a big seller in IT.
So far this year, FPIs have pulled out Rs 3,430 crore from equities and invested Rs 1,808 crore in the debt market.
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