Indian Economy News

FPIs invest US$ 4.52 billion (Rs. 37,316 crore) in May on strong domestic macro fundamentals, reasonable valuation

Foreign Portfolio Investors (FPIs) invested US$ 4.52 billion (Rs. 37,316 crore) in Indian equities in May, the most in the previous six months. Prior to this, they made a net investment of US$ 4.39 billion (Rs. 36,239 crore) in equities in November 2022.

The surge is attributable to robust macroeconomic fundamentals and reasonable stock prices. A favourable settlement to the US debt ceiling and solid domestic macroeconomic data might result in new asset flows from international investors.

The current quantitative tightening cycle in the United States, as well as India's outperformance in global markets, has brightened the outlook for FPI flows. FPI purchasing has driven the NSE's Nifty benchmark index up 2.4% in May so far.

According to depositories, FPIs invested a net sum of US$ 4.52 billion (Rs. 37,317 crore) in Indian stocks between May 2 and May 26.

This follows a net equity inflow of US$ 1.40 billion (Rs. 11,630 crore) in April and US$ 961.58 million (Rs. 7,936 crore) in March. The substantial investment in Adani Group enterprises by the US-based GQG Partners drove the March investment.

With the latest inflow, net FPI investment in Indian stocks has reached US$ 2.75 billion (Rs. 22,737 crore) in 2023.

According to Chief Investment Strategist at Geojit Financial Services, Mr. VK Vijayakumar, India is among the best-performing countries, with Japan, Taiwan, South Korea, and Brazil, while other developed and developing markets are struggling.

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