Foreign portfolio investors (FPI) made the highest purchases of 2023 in April 11,631 crore in Indian equity. This will be the second consecutive month when FPI has bought. Despite bittersweet Q4 earnings from the IT sector, which led to massive selling in tech giants, both Sensex and Nifty 50 have shown resilient performance in April.
As per NSDL data, FPI equity value purchased 11,631 crores in April 2023. This is several times higher than the investments made in debt and debt-VRR instruments. 806 crores and 1,235 crore in the said month. FPIs are net sellers in the hybrid market 126 crores.
Overall, FPI investment in Indian market is largely due to strong buying in equity market in April. 13,545 crore (including inflows of equity, debt, debt-VRR, and hybrid).
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “FPIs seem to have changed their investment strategy in India in the recent past. They were sellers in the first three months of this year, but in April they turned buyers. became aggressive.” Buyer in the last days of April.”
The Sensex has gained nearly 2,121 points or 3.60 per cent. nifty 50 There was an increase of over 705 points or 4.06% in the month of April.
The latest reading on Friday was at 61,112.44 with Sensex up 463.06 points or 0.76% and Nifty 50 up 149.95 points or 0.84% at 18,065. April 28 is the last trading day of this month.
In the month of March, FPIs were also buying 7,936 crore in the equity market.
An important macro factor tilting the FPI outlook would be the appreciation of the rupee.
“The rupee which had touched a low of 82.94 against the dollar at the end of February this year, has now recovered to 81.75 against the dollar,” Vijayakumar said.
On the way forward, the expert said, “India’s current account deficit is narrowing, and if this trend continues the rupee may strengthen further. FPIs are likely to bring more inflows into India in this context. FPIs are buying in financial services and auto. and auto components.”
Year-to-date, FPIs are net sellers in Indian equities 14,579 crores. The best selling month of 2023 is January where 28,852 crore was recorded. Whereas in February the FPI had sold 5,294 crores.
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