Mumbai: Foreign portfolio investors (FPIs) continued their buying streak in March. FPIs purchased Rs 40, 710 crore worth of Indian equities in March. The total investment stands at Rs 50,471 crore as of March 15, taking into account debt, hybrid, debt-VRR, and equities. Data released by the National Securities Depository Ltd (NSDL) revealed this.
‘The trend of rising foreign portfolio investment in India witnessed in the first week of March continued in the second week, too. FPIs were big sellers in January and modest buyers in February,’’ said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Foreign institutional investors (FIIs) were net sellers in Indian markets as outflows were higher than net investments last week. Domestic institutional investors (DIIs) were net buyers for four out of five sessions last week. FIIs were buyers for three out of four sessions this week and the net outflow stands at Rs 816.91 crore, while DIIs were buyers for four sessions, with a total investment of Rs 14,147.5 crore.
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For the entire calendar year 2023, FPIs bought Rs 1.71 lakh crore in Indian equities and the total inflow stands at Rs 2.37 lakh crore taking into account debt, hybrid, debt-VRR, and equities. FPIs’ net investment in Indian debt market stands at Rs 68,663 crore during 2023. Overall, only four months in 2023–January, February, September, and October- saw net FPI outflows from Indian equities. May, June, and July each recorded FPI inflows above Rs 43,800 crore.
FPIs infused over Rs 19,836 crore in Indian debt markets in January, making it the highest monthly inflow in more than six years. This was the highest inflow since June 2017, when they infused Rs 25,685 crore. FPIs infused Rs 18,302 crore in the debt market in December, Rs 14,860 crore in November, and Rs 6,381 crore in October.
Indian equities witnessed a net outflow of Rs 1.21 lakh crore by FPIs in 2022. Before the outflow, FPIs invested money in the last three years. FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 lakh crore in 2020, and Rs 1.01 lakh crore in 2019. FPIs took out funds worth Rs 15,910 crore in 2022, Rs 10,359 crore in 2021, and Rs 1.05 lakh crore in 2020 from debt markets.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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