FPIs net buyers of Indian equities at Rs 40,710 crore so far in March

Buying activity from the foreign portfolio investors (FPI) returned in March with equity purchases worth Rs 40,710 crore taking place as on March 15. This comes after a lackluster first two months where FPIs bought shares worth Rs 1,539 crore while remaining net sellers in January at 25,744 crore.

With this WPIs are net buyers in 2024 at Rs 16,505.

Attributing the selling trends to the spike in US bond yields, expert V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said the trend of rising foreign portfolio investment in India witnessed in the first week of March continued in the second week, too.

While conceding that the FPI investment continues, Vijayakumar said that the March figures includes some bulk deals executed through the stock exchanges and is therefore not a true indicator of FPI activity.

“An important feature of FPI investment for many months now has been its erratic nature. FPIs have been changing their strategy in response to the changes in the bond yields in the US. Therefore, now that US bond yields have again spiked up in response to stubborn inflation, FPIs may again turn sellers in some of the days, going forward,” Vijayakumar said.

He also points to an important trend in the market in March which is the weakness in the mid and smallcaps and the resilience in largecaps which has persuaded FPIs to reduce selling in largecaps and even buying in limited quantities in sectors like banking, telecom and automobiles.Indian benchmark indices ended Friday with declines that were largely led by selling in energy, auto IT and bank stocks. While The S&P BSE Sensex settled at 72,643.43, higher by 453.85 points or 0.62%, the broader Nifty closed at 22,023.35, up by 123.30 points or 0.56%. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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