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FPI Investment in Indian Equities Touches ₹ 11,500 Crore Mark

Majorly driven by bulk investment from the US-based GQG Partners in the Adani Group companies, the foreign investors have invested ₹ 11,500 crore in the Indian equities this month.

According to experts following the collapse of the US-based banks — Silicon Valley Bank and Signature Bank — that dented sentiments in the market, henceforth FPIs may take cautious steps in their perspective in the coming period.

Based on the data with the depositories, Foreign Portfolio Investors (FPIs) invested ₹ 11,495 crore in Indian equities till March 17.

This came after a net outflow of ₹ 28,852 crore in January and ₹ 5,294 crore in February. Data reflected that FPIs brought in a net amount of ₹ 11,119 crore in December.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said “This (inflow in March) is inclusive of the bulk investment of ₹15,446 crore by GQG in the four Adani stocks.”

FPIs have sold equities to the tune of ₹ 22,651 crore in the current calendar year 2023.

The latest inflows to better prospects of Indian equities over longer time frames, have been attributed by Himanshu Srivastava, Associate Director – Manager Research at Morningstar India.

Given high inflation levels, India has also been going through a rate hike cycle, it is still perceived to be relatively comfortable position with regards to macro conditions compared with other markets. The FPIs have shown consistency in buying in capital goods in terms of investing in sectors.

Vijayakumar pointed that FPIs have been alternating between buying and selling in different fortnights in the financial services.