FPIs turn net buyers in Indian markets

New Delhi: The resilience of the Indian stock market and the improving macros of the Indian economy forced the foreign portfolio investors (FPIs) to turn buyers in India, says VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The distinct trend in FPI flows this year is the erratic nature of equity flows in contrast to the steady positive trend in debt inflows.

The year began with equity outflows of Rs25,743 crore in January which turned into a mild positive inflow of Rs1,538 crore in February and a sharp spurt to Rs35,098 crore inflows in March, he said.

FPIs were big buyers in capital goods, automobiles, financials, telecom and real estate. They were sellers in IT. FPI inflow into debt has been steady this year and has reached an impressive figure of Rs 55,857 crore in 2024 so far, he added.

Alok Agarwal, Head Quant & Portfolio Manager, Alchemy Capital Management, said Foreign Portfolio Investment (FPI) holdings in the Indian market has dropped to a decadal low of 16.6 per cent in 2023, largely due to a selloff triggered by portfolio underperformance and a spike in US bond yields.