Foreign Portfolio Investors (FPIs) pumped up Rs 11,630 crore in the Indian stock markets in April on the reasonable valuation of stocks and appreciation in the rupee. This came after Foreign Portfolio Investors infused a net sum of Rs 7,936 crore in equities in March, mainly driven by bulk investment in the Adani Group companies by the USbased GQG Partners.

However, if one adjusts for the investments of GQG in Adani Group, the net flow was negative. Going forward, the outlook for FPI flow is expected to remain volatile due to the tight monetary policy of the US Federal Reserve. The interest rate hike by 25 basis points in the coming policy meeting as indicated by the US Fed minutes, could impact Foreign Portfolio Investors investments, Sonam Srivastava, founder of investment advisory firm Wright Research, said. However, the stability of the Indian economy compared to other emerging markets and reasonable valuations may continue to attract them to Indian equities, she added. According to data from the depositories,

Foreign Portfolio Investors  started the current financial year on a positive note, and invested Rs 11,630 crore in Indian equities in April. In the first half of April, FPIs showed strong buying activity, indicating a renewed sense of optimism in the Indian equity market.

However, this optimism was dampened in the third week of the month due to concerns about elevated interest rates and weak economic indicators in the US. Once again they turned aggressive buyers in the last few days of April, and the inflow of foreign capital is likely to continue in the longer term, Anand Dalmia, co-founder and CBO of Fisdom, said. Apart from equities, FPIs have put in Rs 805 crore in the debt market during the period under review.

Market Watch: FPIs invest Rs8,643 cr in equities in April

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