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NEW DELHI: Foreign portfolio investors (FPIs) maintained their position as net buyers in the Indian stock markets for the third consecutive month in April. According to data from the National Securities Depository Limited (NSDL), FPIs have purchased stocks worth Rs 13,347 crore in India so far this month.
Despite the positive trend, VK Vijayakumar, chief investment strategist at Geojit Financial Services, cautioned that “A major concern is the surcharged geopolitical situation in the Middle East with heightened tensions between Iran and Israel.These will keep the markets on tenterhooks in the near-term.”
In March, FPIs bought stocks worth Rs 35,098 crore, contributing to the overall positive sentiment in the Indian equity market. The optimism can be attributed to several factors, including robust GDP growth forecasts, manageable inflation levels, political stability at the central government level, and indications that the central bank has concluded its monetary policy tightening cycle.
India’s economy demonstrated remarkable growth, with GDP expanding by 8.4 per cent during the October-December quarter of the financial year 2023-24, solidifying its position as the fastest-growing major economy. However, FPIs had aggressively sold Indian stocks in January, following two months of substantial accumulation in November and December.
In December alone, FPIs accumulated stocks worth Rs 66,135 crore, accounting for more than one-third of the total inflow of approximately Rs 171,107 crore for the entire year. This strong inflow of funds from FPIs had supported the benchmark stock indices in reaching all-time highs. Prior to November, FPI participation in Indian stocks was tepid, with net selling observed in September and October, amounting to Rs 14,768 crore and Rs 24,548 crore, respectively.
Despite the positive trend, VK Vijayakumar, chief investment strategist at Geojit Financial Services, cautioned that “A major concern is the surcharged geopolitical situation in the Middle East with heightened tensions between Iran and Israel.These will keep the markets on tenterhooks in the near-term.”
In March, FPIs bought stocks worth Rs 35,098 crore, contributing to the overall positive sentiment in the Indian equity market. The optimism can be attributed to several factors, including robust GDP growth forecasts, manageable inflation levels, political stability at the central government level, and indications that the central bank has concluded its monetary policy tightening cycle.
India’s economy demonstrated remarkable growth, with GDP expanding by 8.4 per cent during the October-December quarter of the financial year 2023-24, solidifying its position as the fastest-growing major economy. However, FPIs had aggressively sold Indian stocks in January, following two months of substantial accumulation in November and December.
In December alone, FPIs accumulated stocks worth Rs 66,135 crore, accounting for more than one-third of the total inflow of approximately Rs 171,107 crore for the entire year. This strong inflow of funds from FPIs had supported the benchmark stock indices in reaching all-time highs. Prior to November, FPI participation in Indian stocks was tepid, with net selling observed in September and October, amounting to Rs 14,768 crore and Rs 24,548 crore, respectively.
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