FPIs divest Indian equities worth over Rs 20,000 crore in four trading sessions
The development came amid escalating tensions in the Middle East and a substantial surge in the US bond yields.
Foreign Portfolio Investments (FPIs) in March have shown a significant resurgence in their investment activity within the Indian equity markets, data with the depositories showed.
The investments injected over Rs 38,000 crore, mainly driven by favourable shifts in the global economic scenario and strong domestic macroeconomic outlook.
The investment came following a modest investment of Rs 1,539 crore in February and a massive outflow of Rs 25,743 crore in January, the data said.
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According to the data, apart from equities, the FPIs have injected a massive Rs 13,223 crore into the debt market this month.
It 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.
With this, the FPIs investment has turned positive to the tune of Rs 13,893 crore in equities so far in 2024 and Rs 55,480 crore in the debt market.
Notably, the recent market correction has provided a buying opportunity.
Experts believed that the FPIs influx 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.
Last week, the FPIs turned net sellers, although marginally, to the tune of USD 314 million. This could be largely attributed to FPIs adopting a cautious approach.
FPIs have been investing in the debt markets for the past few months. They invested Rs 22,419 crore in February and Rs 19,836 crore in January.
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