Foreign investors have pumped Rs 11,500 crore into Indian stocks so far this month, largely thanks to US-based GQG Partners’ heavy investments in Adani group companies.
Going forward, FPIs may take a cautious approach in the coming days after the collapse of US-based banks — Silicon Valley Bank and Signature Bank — dented market sentiment, experts said.
Foreign portfolio investors (FPIs) have invested Rs 11,495 crore in Indian equities till March 17, according to depository data.
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This came after net outflows of Rs 5,294 crore in February and Rs 28,852 crore in January. Earlier, FPIs infused a net amount of Rs 11,119 crore in December, data showed.
“This (March inflow) includes a large investment of Rs 15,446 crore by GQG in four Adani stocks,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Barring this, FPI activity in equities presents a strong selling ground.
In the calendar year 2023, FPIs sold shares amounting to 22,651 crores.
Himanshu Srivastava, associate director – research manager at Morningstar India, attributed the latest inflows to a better outlook for Indian stocks over longer time frames.
Although, like many other countries, India has also been going through a cycle of rate hikes in view of high inflation levels, it is still considered to be relatively better positioned in terms of macro conditions compared to other markets.
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On the other hand, FPIs have drawn Rs 2,550 crore from the debt market during the period under review.
In terms of sector investments, FPIs have been consistent buyers of capital goods only.
In financial services, FPIs alternated between buying and selling in the fortnight. With risk-off being the dominant market sentiment now following the US bank failure and contagion fears, FPIs are unlikely to turn away buyers in the short term, said Vijayakumar of Geojit Financial Services.
