Foreign portfolio investors (FPIs) continued to buy Indian equities for a fourth straight month as they injected over ₹30,600 crore in June so far on the country’s strong economic rebound and positive growth outlook. FPIs have pumped in over ₹43,000 crore in Indian equities in May, which is the highest investment in nine months by FPIs.
Foreign investors have been buyers across sectors like financials, autos and capital goods stocks. They were sellers of IT, metals, power, and textiles stocks.
As per the NSDL data, FPIs inflow in Indian equities comes to ₹30,664 crore in June. In May, FPIs invested ₹43,838 crore, which is not just the highest monthly buying of 2023, but also the highest since November last year.
So far in 2023, foreign investors have put in over ₹45,600 crore in Indian equities and close to ₹8,100 crore in the debt markets.
Apart from equities, FPIs invested ₹550 crore in the debt market during the period under review due to the attractive yields offered by Indian debt securities.
“FPIs continued their May strategy in June too, so far. Globally, Japan continues to attract the biggest inflows, followed by India. They were big sellers in China and also sold in S Korea and Thailand. In India, FPIs were big buyers in financials, autos and capital goods. Since these segments are doing well and their prospects look good, they are likely to attract more inflows, going forward. FPIs continued selling in IT and metals since these sectors are facing many short term headwinds,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The yearly FPI equity inflows have risen to ₹59922 crores. FPI inflows are likely to moderate, going forward, due to rising valuations in India and the rising interest rate scenario,” it added.
Domestic equities suffered significant losses on Friday amid weak global cues as investors remained concerned over sticky inflation, rate hikes and their impact on global economic growth.
Sensex closed 260 points, or 0.41 per cent, lower at 62,979.37 with 23 stocks in the red and only seven in the green. The Nifty50 closed the day at 18,665.50, down 106 points, or 0.56 per cent.
In April month, FPIs inflow stood at ₹11,631 crore and ₹7,936 crore in March. The March investment was mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners
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Updated: 24 Jun 2023, 06:15 PM IST