FPI bought equity worth Rs 18,617 crore in May


NEW DELHI: In May foreign portfolio investors (FPI) bought equity for 18,617 crore rupees.
VK Vijayakumarsaid the chief investment strategist at Geojit Financial Services that there is a significant shift in FPI strategy with a clear pro-India bias.
In the first three months of 2023 FPIs were steady sellers in India due to India’s high valuations and opportunities presented by China’s reopening and relatively lower valuations in South Korea, Hong Kong and Taiwan. That phase is now over and India has once again become a popular emerging market destination for FPIs, Vijayakumar said.
FPIs have been continuous buyers for the past 12 trading sessions. From May to May 12 they bought shares for 18,617 crore rupees.
The financial sector remains the most popular sector among FPIs. They were also buyers of capital goods and cars.
Vijayakumar said that with the rupee strong and the dollar expected to weaken in the near term, FPIs are likely to continue buying in India. The improvement in India’s macro data also favors continued inflows into India.
Foreign portfolio investors turned aggressive buyers in the final days of April.
FPIs have bought shares worth Rs.9,752 crore as of April 29. The Monthly Economic Report for March, released by the Union Treasury, said that the tightening of the CAD, accompanied by a rising foreign portfolio investment (FPI) inflow, led to an increase in foreign exchange reserves by the end of the third quarter of 2022-23.
With FX reserves continuing to rise through the end of 2022-23, prospects for an even tighter CAD in Q4 2022-23 are good. As external stability increased, the factors contributing to internal stability also improved.
The fiscal parameters for the center and states in 2022-23 have been robust, reflected in solid revenue generation and improving spending quality, the document said.

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