Foreign portfolio investors (FPIs) have infused Rs 8,643 crore in the Indian equity markets so far this month on the reasonable valuation of stocks, analysts said
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 US-based GQG Partners.
Foreign portfolio investors started the current financial year on a positive note and invested Rs 8,643 crore in Indian equities from April 3, data with the depositories showed. The situation is generally favourable for economies like India in terms of FPI inflows, Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, said. Also, the valuation of Indian equities has come to a reasonable level following its consolidation, which prompted FPIs to invest in Indian stocks, he added.
Another market expert believes that valuations have become more palatable given almost zero NSE 50 returns over the last 17-18 months. Apart from equities, FPIs have invested Rs 778 crore in the debt market during the period under review. I
n terms of sectors, FPIs heavily bought financial stocks for Rs 4,410 crore during the fortnight that ended April 15. Besides, they were also buyers of automobiles and capital goods. "There were huge delivery volumes in stocks like HDFC Bank, HDFC, and Tata Motors during the fortnight. It can be safely assumed that the bulk of this delivery buying was done by FPIs.
Foreign portfolio investors have also increased their holding in ITC," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
