FPIs invest Rs 8,767 cr in Apr

New Delhi: After pulling out funds on a net basis in 2022-23, foreign portfolio investors (FPIs) started the current financial year on a positive note and invested Rs8,767 crore in the Indian equities so far this month on the reasonable stocks' valuation.

Going forward, FPIs flow is expected to remain volatile, given the tight monetary policy of the US Federal Reserve, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said. The US Fed minutes have indicated an interest rate hike by 25 basis points in the coming policy meeting while voicing confidence in the stability of the US financial system.

According to the data with the depositories, FPIs were buyers in all days of April so far, and pumped a net sum of Rs 8,767 crore in Indian equities during April 3-13. This came after FPIs infused a net sum of Rs 7,936 crore in equities in March, mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners. However, if one adjusts for the investments of GQG in Adani Group, the net flow is negative. India has been one of the best investment destinations for FPIs among emerging markets in April so far, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, attributed a slew of factors for inflows, including stabilisation of the global scenario on the back of moderation in apprehensions about the banking crisis in the US and Europe. In addition, the valuation of Indian equities has come to a reasonable level following its consolidation, which prompted FPIs to invest in Indian stocks, he added. Naushil Shah – Investment Advisor, TrustPlutus Wealth (India) Pvt Ltd, said valuations have become more palatable given almost zero NSE 50 returns over the last 17-18 months.