In May, foreign portfolio investors (FPIs) continued to buy Indian stocks.
Foreign portfolio investors (FPIs) continued to purchase Indian shares in May, investing Rs 10,850 crore in the past four trading sessions as a result of the country’s stable macroeconomic climate, solid GST collection, and better-than-expected corporate quarterly profits.
This follows a net injection of Rs 11,630 crore in stocks in April and Rs 7,936 crore in March, according to depositories’ data.
GQG Partners, located in the United States, made a large investment in Adani Group firms in March. However, after adjusting for GQG’s stake in Adani Group, the net flow is negative.
Going forward, the rupee’s gain and solid fourth-quarter performance would help increase capital flows to India, according to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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FPIs invested a net sum of Rs 10,850 crore in Indian stocks in the last four trading days, May 2-5, according to depositories data.
“FPIs would have been drawn to Indian stocks by the country’s stable macroeconomic climate, strong GST collection figures, and better-than-expected corporate results,” Morningstar India Associate Director – Manager Research Himanshu Srivastava said.
Furthermore, recent market volatility and irregular corrections, as well as the global financial system’s resilience, raised investor morale, spurring inflows, he observed.
As stated by Geojit’s Vijayakumar, India outperformed most markets in April. The prolonged purchase by FPIs is the primary cause of the outperformance.
FPIs, on the other hand, withdrew Rs 2,460 crore from the debt market during the review period.
In terms of industries, FPIs continued to acquire capital goods and made big purchases in financial services in the second half of April. They were nonetheless quite popular in the IT industry. FPIs have pulled out Rs 3,430 crore from stocks this year and invested Rs 1,808 crore in the debt market.
