FPIs remain aggressive buyers in January too
Bulge-bracket Foreign Portfolio Investors continue to pump prime Indian equity markets in the first week of January, contrary to empirical data processed over the last few years.
Amid the ongoing general elections, the Foreign Portfolio Investors (FPIs) have adopted a wait and watch stance.
The data from National Securities Depository Limited (NSDL) has shown that they have infused only Rs 1,156 crore in the first two trading sessions of this month.
In April, FPIs dumped equities worth Rs 8,700 crore on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields.
Advertisement
Earlier, they put in Rs 13,602 crore in March, Rs 22,419 crore in February, Rs 19,836 crore in January. This inflow was driven by the upcoming inclusion of Indian government bonds in the JP Morgan Index.
FPIs, who continued to remain net buyers for the third month until mid-April, have cumulatively sold stocks worth Rs 8,671 crore by the end of the month, data showed.
In the two days of trading in May, Foreign Portfolio Investors (FPIs) have invested Rs 1,156 crore in equity and sold Rs 1,726 crore in debt, data with the depositories showed.
On the other hand, FPIs withdrew Rs 1,727 crore from the debt market during the period under review.
It is to be noted that the JP Morgan Chase & Co in September last year announced that it would add Indian government bonds to its benchmark emerging market index from June 2024.
This landmark inclusion is anticipated to benefit India by attracting around USD 20-40 billion in the subsequent 18 to 24 months.
NSDL data also showed that India’s GDP grew at a massive 8.4 per cent during the October-December quarter of the current financial year 2023-24. The country continued to remain the fastest-growing major economy, and is poised to maintain its growth trajectory going ahead.
In December, they accumulated stocks worth Rs 66,135 crore. In November, the FPI inflow was Rs 9,001 crore.
Advertisement
