NEW DELHI: Overseas portfolio investors (FPIs) invested Rs. 43,838 crore in Indian equities in May, the highest level in nine months, supported by strong macroeconomic fundamentals and reasonable valuations.
FPIs continued their buying stance into June, investing 6,490 crore rupees in just two trading sessions during the month, repository data showed.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the inflow of FPIs since last month will continue in the current month GDP data and high-frequency indicators reflect a robust economy that continues to gain strength.
According to the data, FPIs invested a net amount of Rs.43,838 crore in Indian equities for the entire month of May.
This is the highest level of investment by FPIs in the past nine months. They previously invested Rs.51,204 crore net in stocks in August 2022, data showed.
This comes after a net investment of Rs.11,630 crore in shares in April and Rs.7,936 crore in March.
The investment in March was mainly driven by mass investments in the Adani Group companies by US-based companies GQG Partners. However, adjusting for GQG’s investment in Adani Group, the net flow was negative.
In addition, FPIs have withdrawn over 34,000 crore rupees in the first two months of the year.
Himanshu SrivastavaDeputy Director – Manager Research at Morningstar Indiasaid the recent net inflows were largely due to the strong domestic macroeconomic outlook, reasonable valuation of Indian equities and a good earnings season, all of which bode well for growth prospects.
Continued buying by FPIs pushed the NSE benchmark index, the Nifty, higher over the period.
Interestingly, India attracted the largest investment of any emerging market and FPIs were sellers in China.
In terms of sectors, financials, autos, telecoms and construction are attracting large investments.
Aside from equities, FPIs invested Rs. 3,276 crore in the debt market in May.
So far in 2023, foreign investors have invested Rs. 35,748 crore in Indian stock market and Rs. 7,471 crore in debt market.
FPIs continued their buying stance into June, investing 6,490 crore rupees in just two trading sessions during the month, repository data showed.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the inflow of FPIs since last month will continue in the current month GDP data and high-frequency indicators reflect a robust economy that continues to gain strength.
According to the data, FPIs invested a net amount of Rs.43,838 crore in Indian equities for the entire month of May.
This is the highest level of investment by FPIs in the past nine months. They previously invested Rs.51,204 crore net in stocks in August 2022, data showed.
This comes after a net investment of Rs.11,630 crore in shares in April and Rs.7,936 crore in March.
The investment in March was mainly driven by mass investments in the Adani Group companies by US-based companies GQG Partners. However, adjusting for GQG’s investment in Adani Group, the net flow was negative.
In addition, FPIs have withdrawn over 34,000 crore rupees in the first two months of the year.
Himanshu SrivastavaDeputy Director – Manager Research at Morningstar Indiasaid the recent net inflows were largely due to the strong domestic macroeconomic outlook, reasonable valuation of Indian equities and a good earnings season, all of which bode well for growth prospects.
Continued buying by FPIs pushed the NSE benchmark index, the Nifty, higher over the period.
Interestingly, India attracted the largest investment of any emerging market and FPIs were sellers in China.
In terms of sectors, financials, autos, telecoms and construction are attracting large investments.
Aside from equities, FPIs invested Rs. 3,276 crore in the debt market in May.
So far in 2023, foreign investors have invested Rs. 35,748 crore in Indian stock market and Rs. 7,471 crore in debt market.
