New Delhi: foreign portfolio investor (FPIs) have infused Rs 8,643 crore into the Indian equity markets so far this month at a fair valuation of the shares, according to analysts.
FPIs infused a net Rs 7,936 crore into equities in March, mainly driven by wholesale investments. Adani group companies US-based by GQG Partners,
FPIs started the current fiscal on a positive note and invested Rs 8,643 crore in Indian equities since April 3, data from the depositories showed.
The situation is generally favorable for economies like India in terms of FPI inflows, Himanshu Srivastavasaid Associate Director-Manager Research, Morningstar India.
Also, valuations of Indian equities have come down to a reasonable level after its consolidation, which has prompted FPIs to invest in Indian stocks, he said.
Another market expert believes that valuations have become more attractive given almost zero NSE 50 returns in last 17-18 months.
Apart from equity, FPIs have invested Rs 778 crore in the debt market during the period under review.
In terms of sectors, FPIs made heavy purchases in financial stocks worth Rs 4,410 crore during the fortnight ended April 15. Besides this, he was also a buyer of automobiles and capital goods. Besides this, buying interest was also seen in IT stocks, though marginally.
“There were heavy delivery volumes in stocks like HDFC Bank, HDFC and Tata Motors during the fortnight. It can be safely assumed that the bulk of this delivery buying was done by FPIs. FPIs have also increased their holding in ITC. Vijay Kumarsaid Chief Investment Strategist at Geojit Financial Services.
Stocks in which FPI participation has been on the rise have shown resilience even during times of market weakness.
Going forward, FPI inflows are likely to remain stable, Vijayakumar said. Financials will continue to attract more inflows as the segment’s initial Q4 results are very good.’
Overall, FPIs pulled out a net Rs 37,631 crore from Indian equities amid aggressive rate hikes by central banks globally in 2022-23 and a record Rs 1.4 lakh crore in 2021-22. Prior to these withdrawals, FPIs had invested a record Rs 2.7 lakh crore in equities in 2020-21 and Rs 6,152 crore in 2019-20.
In the financial year 2022-23, most major central banks started raising interest rates, resulting in outflow of hot money from emerging markets including India. This resulted in an unprecedented rise in prices (inflation) in most economies.
Apart from global monetary tightening, volatile crude oil, and the Russia and Ukraine conflict as well as a rise in commodity prices led to an exodus of foreign funds in 2022-23.
FPIs infused a net Rs 7,936 crore into equities in March, mainly driven by wholesale investments. Adani group companies US-based by GQG Partners,
FPIs started the current fiscal on a positive note and invested Rs 8,643 crore in Indian equities since April 3, data from the depositories showed.
The situation is generally favorable for economies like India in terms of FPI inflows, Himanshu Srivastavasaid Associate Director-Manager Research, Morningstar India.
Also, valuations of Indian equities have come down to a reasonable level after its consolidation, which has prompted FPIs to invest in Indian stocks, he said.
Another market expert believes that valuations have become more attractive given almost zero NSE 50 returns in last 17-18 months.
Apart from equity, FPIs have invested Rs 778 crore in the debt market during the period under review.
In terms of sectors, FPIs made heavy purchases in financial stocks worth Rs 4,410 crore during the fortnight ended April 15. Besides this, he was also a buyer of automobiles and capital goods. Besides this, buying interest was also seen in IT stocks, though marginally.
“There were heavy delivery volumes in stocks like HDFC Bank, HDFC and Tata Motors during the fortnight. It can be safely assumed that the bulk of this delivery buying was done by FPIs. FPIs have also increased their holding in ITC. Vijay Kumarsaid Chief Investment Strategist at Geojit Financial Services.
Stocks in which FPI participation has been on the rise have shown resilience even during times of market weakness.
Going forward, FPI inflows are likely to remain stable, Vijayakumar said. Financials will continue to attract more inflows as the segment’s initial Q4 results are very good.’
Overall, FPIs pulled out a net Rs 37,631 crore from Indian equities amid aggressive rate hikes by central banks globally in 2022-23 and a record Rs 1.4 lakh crore in 2021-22. Prior to these withdrawals, FPIs had invested a record Rs 2.7 lakh crore in equities in 2020-21 and Rs 6,152 crore in 2019-20.
In the financial year 2022-23, most major central banks started raising interest rates, resulting in outflow of hot money from emerging markets including India. This resulted in an unprecedented rise in prices (inflation) in most economies.
Apart from global monetary tightening, volatile crude oil, and the Russia and Ukraine conflict as well as a rise in commodity prices led to an exodus of foreign funds in 2022-23.