FPI Inject Record Rs 43,838 Crore into Indian Equities in May

5 Jun 2023 , 11:45 AM

Foreign Portfolio Investors (FPIs) exhibited a strong buying trend in the Indian equity market in May, investing a substantial amount of Rs 43,838 crore. This surge marks the highest level of FPI investment in the past nine months, driven by robust macroeconomic fundamentals and attractive valuations.

The positive momentum continued into June, with FPIs investing Rs 6,490 crore within the first two trading sessions of the month, as reported by data from repositories.

Notably, FPIs withdrew Rs 34,000 crore in the first two months of the year. However, the scenario shifted as FPIs gained confidence in the strong domestic macro-outlook, reasonable valuations in Indian equities, and positive earnings season signaling improved growth prospects.

Positive Impact on NSE Benchmark Index, Nifty : The consistent buying by FPIs has had a positive impact on the NSE benchmark index, Nifty, during the review period. India emerged as the preferred investment destination among emerging markets, while FPIs chose to sell in China.

Various sectors in India are attracting significant investments, including financials, automobiles, telecom, and construction.

In addition to equities, FPIs also allocated Rs 3,276 crore in the Indian debt market in May. Foreign investors have injected Rs 35,748 crore into Indian equities. It has also injected Rs 7,471 crore into the debt market so far in 2023. These substantial inflows from FPIs reinforce the confidence in India’s growth trajectory and present promising opportunities for investors in the country’s financial markets.

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