According to the data with the depositories, Foreign Portfolio Investors (FPIs) invested Rs 11,495 crore in Indian equities so far this month, mainly driven by bulk investment from the US-based GQG Partners in the Adani Group companies.
Going ahead, FPIs may take a cautious stance in their approach in the coming days following the collapse of the US-based banks — Silicon Valley Bank and Signature Bank — that dented sentiments in the market, experts said.
This came after a net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January. Prior to that, FPIs infused a net amount of Rs 11,119 crore in December, data showed.
Excluding this, FPI activity in equities represent a strong selling undercurrent. In the calendar year 2023, FPIs have sold equities to the tune of Rs 22,651 crore.
Although, like many other countries, India has also been going through a rate hike cycle given high inflation levels, it is still perceived to be relatively better placed with respect to macro conditions compared with other markets.
On the other hand, FPIs pulled out Rs 2,550 crore from the debt markets during the period under review. In terms of investing in sectors, FPIs have been consistent buyers only in capital goods. In financial services, FPIs have been alternating between buying and selling in different fortnights.
(Input from PTI)