FPIs infuse Rs 38,000 cr into equities in Mar
Apart from equities, FPIs injected `13,223 cr into the debt market this month so far
The improved global economic conditions and positive Indian macroeconomic scenario have driven FPIs to invest in high growth-oriented markets like India. However, last week, FPIs turned net sellers, although marginally, to the tune of $314 mn. This could be largely attributed to FPIs adopting a cautious approach
New Delhi: FPIs have shown a significant resurgence in their investment activity within the Indian equity markets this month, injecting over Rs38,000 crore, mainly driven by favourable shifts in the global economic scenario and strong domestic macroeconomic outlook. The investment came following a modest investment of Rs1,539 crore in February and a massive outflow of Rs25,743 crore in January, data with the depositories snowed. With this, foreign portfolio investors’ (FPIs) investment has turned positive to the tune of Rs13,893 crore in equities so far in 2024 and Rs55,480 crore in the debt market.
Himanshu Srivastava, Associate Director at Manager Research at Morningstar Investment Research India, highlighted that FPIs have become significant buyers in March. The improved global economic conditions and positive Indian macroeconomic scenario have driven FPIs to invest in high growth-oriented markets like India. Additionally, the recent market correction has provided a buying opportunity. Further, the influx of FPIs can be attributed to robust GDP growth and expectations of a potential shift in the RBI’s policy, possibly leading to rate cuts of 25-50 basis points in the latter half of fiscal 2025, experts believe.
However, last week, FPIs turned net sellers, although marginally, to the tune of $314 million. This could be largely attributed to FPIs adopting a cautious approach. Apart from equities, FPIs have injected a massive Rs 13,223 crore into the debt market this month (till March 22). This came in the backdrop of Bloomberg announcing India’s bonds inclusion in its Emerging Market (EM) Local Currency Government Index and related indices from January 31 next year.
