FPIs invest ₹1,156 crore in Indian equities, remain net sellers in debt market; Here's what experts predict

FPIs invested ₹1,156 crore worthy of Indian equities and the full outflow stands astatine ₹771 crore arsenic of May 3, taking into relationship debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. The full indebtedness outflows basal astatine ₹1,727 crore truthful acold this month.

FPI enactment successful Indian markets

FPIs offloaded ₹8,671 crore successful Indian equities past period and ₹10,949 crore successful indebtedness markets implicit precocious US enslaved yields. However, they pumped ₹35,098 crore successful Indian equities during March 2024 - the highest inflows recorded successful the archetypal 3 months of 2024. FPI outflow initially declined successful February 2024 until they were nett buyers by the extremity of the month, contempt precocious US enslaved yields. 

The inflow into Indian equities stood astatine ₹1,539 crore successful February 2024 and the indebtedness marketplace concern roseate to ₹22,419 crore during the period connected apical of the ₹19,836 crore bought successful January. 

The inclusion of authorities bonds to JPMorgan and Bloomberg indebtedness indices had particularly triggered overseas money inflows into indebtedness markets. FPIs turned monolithic sellers successful January 2024 snapping their buying streak arsenic investments saw a crisp uptick successful December 2023 aft they reversed their three-month selling streak successful November 2023.

However, inflow intensified successful December connected beardown planetary cues aft the US Federal Reserve signalled the extremity of its tightening rhythm and raised expectations of a complaint chopped successful March 2024. This led to a clang successful US enslaved yields and triggered overseas money inflows into emerging markets similar India.

For the full calendar twelvemonth 2023, FPIs bought ₹1.71 lakh crore successful Indian equities and the full inflow stands astatine ₹2.37 lakh crore taking into relationship debt, hybrid, debt-VRR, and equities, according to NSDL data. FPIs' nett concern successful Indian indebtedness marketplace stands astatine ₹68,663 crore during 2023.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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Published: 04 May 2024, 10:19 PM IST