New Delhi: foreign investors It has infused Rs 11,500 crore into Indian equities so far this month, mainly driven by US-based GQG Partners’ bulk investment in Adani group companies.
FPIs may turn cautious in their approach in the coming days following the collapse of US banks – Silicon Valley Bank and Signature Bank – which influenced the sentiment in the market, experts said.
Foreign portfolio investors (FPIs) invested Rs 11,495 crore in Indian equities till March 17, according to depository data.
This comes after net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January. Earlier in December, FPI had invested a net Rs 11,119 crore.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “This (inflows in March) adds to the Rs 15,446-crore bulk investment by GQG in the four Adani shares.”
Barring this, FPI activity in equities represents a strong sell undercurrent.
In the calendar year 2023, FPIs have sold equities worth Rs 22,651 crore.
Himanshu Srivastava, associate director-manager research at Morningstar India, attributed the latest inflows to better prospects for Indian equities over longer time frames.
Although India, like many other countries, is going through a rate hike cycle given high inflation levels, it is considered to be relatively better off with respect to macro conditions compared to other markets.
On the other hand, FPIs pulled out Rs 2,550 crore from the debt markets during the period under review.
In terms of investments across sectors, FPIs have been consistent buyers only in capital goods.
In financial services, FPIs have been alternating between buying and selling in different fortnights. Vijayakumar of Geojit Financial Services said since risk aversion is now the dominant mood in the market following bank failures in the US and contagion fears, FPIs are unlikely to turn buyers in the near term.
FPIs may turn cautious in their approach in the coming days following the collapse of US banks – Silicon Valley Bank and Signature Bank – which influenced the sentiment in the market, experts said.
Foreign portfolio investors (FPIs) invested Rs 11,495 crore in Indian equities till March 17, according to depository data.
This comes after net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January. Earlier in December, FPI had invested a net Rs 11,119 crore.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “This (inflows in March) adds to the Rs 15,446-crore bulk investment by GQG in the four Adani shares.”
Barring this, FPI activity in equities represents a strong sell undercurrent.
In the calendar year 2023, FPIs have sold equities worth Rs 22,651 crore.
Himanshu Srivastava, associate director-manager research at Morningstar India, attributed the latest inflows to better prospects for Indian equities over longer time frames.
Although India, like many other countries, is going through a rate hike cycle given high inflation levels, it is considered to be relatively better off with respect to macro conditions compared to other markets.
On the other hand, FPIs pulled out Rs 2,550 crore from the debt markets during the period under review.
In terms of investments across sectors, FPIs have been consistent buyers only in capital goods.
In financial services, FPIs have been alternating between buying and selling in different fortnights. Vijayakumar of Geojit Financial Services said since risk aversion is now the dominant mood in the market following bank failures in the US and contagion fears, FPIs are unlikely to turn buyers in the near term.
,
- Advertisement -
