FPIs pump ₹3,864 cr in Indian equities so far in Jan; Will the inflow sustain?
Foreign portfolio investors (FPIs) were net buyers in the Indian stock market in 2023 but the inflows slowed down in early January. FPI investments saw a sharp uptick in December after having reversed their three-month selling streak in November.
FPIs have bought ₹3,864 crore worth of Indian equities and the total inflow stands at ₹9,034 crore as of January 12, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. FPIs were big players in financial services and information technology (IT), according to analysts.
“The surge in FPI inflows during December 2023 which stood at ₹58,372 crore, slowed down in early January 2024. As per NSDL data, total FPI investment through the stock exchanges in January up to 13th is ₹2,743 crore,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
FPI activity in Indian markets
The inflow intensified last month on strong global cues after the US Federal Reserve signalled the end of its tightening cycle and raised expectations of a rate cut in March 2024. This led to a crash in US bond yields and triggered foreign fund inflows into emerging markets like India.
In December, FPIs were big buyers in financial services and also in IT. FPIs also bought in sectors like autos, capital goods, oil and gas and telecom, according to Dr. V K Vijayakumar.
For the entire calendar year 2023, FPIs bought ₹1.71 lakh crore in Indian equities and the total inflow stands at ₹2.37 lakh crore taking into account debt, hybrid, debt-VRR, and equities, according to NSDL data. FPIs’ net investment in Indian debt market stands at ₹68,663 crore during 2023.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 13 Jan 2024, 04:23 PM IST
