FPIs begin FY24 on a positive note; invest US$ 1.07 billion (Rs. 8,767 crore) in Indian equities

Foreign Portfolio Investors (FPIs) began the current fiscal year on a good note, investing US$ 1.07 billion (Rs. 8,767 crore) in Indian equities so far this month, after withdrawing funds on a net basis in 2022-23.

The US Federal Reserve, Head of Equity Research (Retail), Kotak Securities Ltd, Mr. Shrikant Chouhan said that given the tight monetary policy of the US Federal Reserve, the FPIs flow is projected to remain turbulent in the future.

According to data, FPIs have been buyers in all days of April so far, pumping a net sum of US$ 1.07 billion (Rs. 8,767 crore) into Indian equities from April 3-13. This was followed by a net infusion of US$ 969.63 million (Rs. 7,936 crore) in stocks by FPIs in March, mostly driven by a large investment in Adani Group companies by the US-based GQG Partners.

According to Chief Investment Strategist at Geojit Financial Services, Mr. VK Vijayakumar, India has been one of the finest emerging market investment destinations for FPIs so far in April.

According to Investment Advisor at TrustPlutus Wealth (India) Pvt Ltd, Mr. Naushil Shah, "India being a more stable economy compared to other emerging markets (EMs), FPIs are willing to pay a certain premium, since India has a potential to deliver healthy returns over mid-to-long term horizon ".

FPIs spent a record US$ 32.98 billion (Rs. 2.7 lakh crore) in equities in 2020-21, compared to US$ 751.65 million (Rs. 6,152 crore) in 2019-20. However, capital goods, financials, and construction-related categories are anticipated to see increased buying.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.