Mumbai: Foreign portfolio investors (FPIs) withdrew out Rs 325 crore from Indian equities in the first week of this month till April 5. According to market experts, FPIs were influenced by relatively high valuations and the upcoming general elections. On the other hand, FPIs have made a net investment of Rs 1,215 crore in the debt market during the period under review.
‘Relatively high valuations and the looming general elections have made FPIs cautious, leading them to hold back from aggressive investments in the equity markets at this juncture,’ Senior Research Analyst at Capitalmind Krishna Appala said.
Meanwhile, FPIs remained net buyers of Indian equities in March 2024. FPIs invested Rs 35,098 crore in Indian equities in last month. Investment by FPIs was observed across various sectors including capital goods, automobiles, financials, telecom, and real estate. In the first two months of 2024, FPIs were net sellers. They pulled out equities worth Rs 25,744 crore in January and making purchases of only Rs 1,539 crore in February.
Also Read: Gulf Air to operate flights to this city: Details
Meanwhile, Foreign Portfolio Investors (FPIs) have made a net investment of around Rs 2.08 lakh crore in the Indian equity markets and Rs 1.2 lakh crore in the debt market in 2023-24 fiscal year. Collectively, they infused Rs 3.4 lakh crore into the Indian capital market.
In 2022-23, Indian equities witnessed a net outflow of Rs 37,632 crore by FPIs. Before this, FPIs pulled out a massive Rs 1.4 lakh crore. In 2020-2021, FPIs made a record investment of Rs 2.74 lakh crore.
For the entire calendar year 2023, FPIs bought Rs 1.71 lakh crore in Indian equities and the total inflow stands at Rs 2.37 lakh crore taking into account debt, hybrid, debt-VRR, and equities. FPIs’ net investment in Indian debt market stands at Rs 68,663 crore during 2023.
Indian equities witnessed a net outflow of Rs 1.21 lakh crore by FPIs in 2022. Before the outflow, FPIs invested money in the last three years. FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 lakh crore in 2020, and Rs 1.01 lakh crore in 2019. FPIs took out funds worth Rs 15,910 crore in 2022, Rs 10,359 crore in 2021, and Rs 1.05 lakh crore in 2020 from debt markets.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
Post Your Comments