In 2024, so far, FPIs have purchased domestic shares worth Rs 10,893 crore. In January they were net sellers and sold equities worth Rs 25,744 crore and followed it with purchases worth Rs 1,539 crore in February.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services called the current trends in FPI flows as “erratic in nature” in contrast to the steady positive trend in debt inflows. However, he feels that the resilience shown by the domestic stock markets and improving macros of the Indian economy have forced the FPIs to turn buyers. FPIs were big buyers in capital goods, automobiles, financials, telecom and real estate while remaining net sellers in IT, he said.
FPI buying in debt instruments has been to the tune of Rs 55,800 crore over the last three months.
Alok Agarwal, Head Quant & Portfolio Manager, Alchemy Capital Management said that FPI inflows in FY24 have remained robust so far, indicating continued foreign investor confidence in the Indian market. However, in his view, the markets are deriving their real strength from the emergence of retail investors who have played a crucial role in counterbalancing the impact of FPI outflows.
Also Read: What FII rollover data of Nifty, single stock futures mean for markets in April series?Domestic mutual funds and retail investors have significantly increased their free float ownership in NSE-listed companies, he added. In the March series, Nifty Index gained 1.6%, settling at 22,327 while Nifty Bank was up 2.2%, settling at 47,125. Amid this upward journey, the midcap index and small-cap Index closed with losses of 0.5% and 4.4%, respectively.
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