New Delhi: Foreign portfolio investors (FPIs) poured Rs 43,838 crore into Indian equities in May, the highest level in nine months, supported by strong macroeconomic fundamentals and reasonable valuations.
FPIs continued their buying spree in June as well, investing Rs 6,490 crore in just two trading sessions for the month, the repository data showed.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that investments by FPIs will continue in the current month since the latest. GDP data And high-frequency indicators show a strong economy gaining further strength.
According to the data, FPIs invested a net Rs 43,838 crore in Indian equities for the entire month of May.
This is the highest level of investment by FPIs in the last nine months. Earlier, he had invested Rs 51,204 crore net worth in stocks in August 2022.
This came after a net infusion of Rs 11,630 crore in equity in April and Rs 7,936 crore in March.
March’s investment was mainly driven by bulk investments in US-based Adani group companies GQG Partners, However, if one adjusts for GQG’s investment in the Adani Group, the net inflow was negative.
Besides, FPIs pulled out over Rs 34,000 crore in the first two months of the year.
Himanshu SrivastavaAssociate Director – Manager Research at morningstar indiaSaid the latest net inflows are largely due to a strong domestic macro-outlook, fair valuations of Indian equities and a good earnings season reflecting improved growth prospects.
Sustained buying by FPIs during the period under review has lifted the NSE benchmark index, Nifty.
Interestingly, India attracted the largest investment among all emerging markets, and FPIs were sellers in China.
In terms of sectors, financial, automobile, telecommunication and construction are attracting large investments.
Apart from equity, FPIs invested Rs 3,276 crore in the debt market in May.
So far in 2023, foreign investors have invested Rs 35,748 crore in Indian equity and Rs 7,471 crore in the debt market.
FPIs continued their buying spree in June as well, investing Rs 6,490 crore in just two trading sessions for the month, the repository data showed.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that investments by FPIs will continue in the current month since the latest. GDP data And high-frequency indicators show a strong economy gaining further strength.
According to the data, FPIs invested a net Rs 43,838 crore in Indian equities for the entire month of May.
This is the highest level of investment by FPIs in the last nine months. Earlier, he had invested Rs 51,204 crore net worth in stocks in August 2022.
This came after a net infusion of Rs 11,630 crore in equity in April and Rs 7,936 crore in March.
March’s investment was mainly driven by bulk investments in US-based Adani group companies GQG Partners, However, if one adjusts for GQG’s investment in the Adani Group, the net inflow was negative.
Besides, FPIs pulled out over Rs 34,000 crore in the first two months of the year.
Himanshu SrivastavaAssociate Director – Manager Research at morningstar indiaSaid the latest net inflows are largely due to a strong domestic macro-outlook, fair valuations of Indian equities and a good earnings season reflecting improved growth prospects.
Sustained buying by FPIs during the period under review has lifted the NSE benchmark index, Nifty.
Interestingly, India attracted the largest investment among all emerging markets, and FPIs were sellers in China.
In terms of sectors, financial, automobile, telecommunication and construction are attracting large investments.
Apart from equity, FPIs invested Rs 3,276 crore in the debt market in May.
So far in 2023, foreign investors have invested Rs 35,748 crore in Indian equity and Rs 7,471 crore in the debt market.