Mumbai: Foreign Portfolio Investors (FPI) have infused Rs 1,156 crore in the first two trading sessions of this month. In the two days of trading in May, Foreign Portfolio Investors (FPIs) have invested Rs 1,156 crore in equity and withdrew Rs 1,727 crore from the debt market.
‘With general elections in full swing in India, foreign investors have adopted a wait and watch approach, until the election results are out,’ Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India, said.
‘The latest jobs data in the US indicates a slowing economy and, therefore, rate cuts may be necessitated. The wage increase falling below 4 per cent also reflects a weakening labour market. From the stock market’s perspective this is good news. That’s why the US markets rallied sharply on Friday,’ V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
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This came after FPIs dumped equities worth Rs 8,700 crore in April. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February.
Meanwhile, Foreign Portfolio Investors (FPIs) have made a net investment of around Rs 2.08 lakh crore in the Indian equity markets and Rs 1.2 lakh crore in the debt market in 2023-24 fiscal year. Collectively, they infused Rs 3.4 lakh crore into the Indian capital market.
In 2022-23, Indian equities witnessed a net outflow of Rs 37,632 crore by FPIs. Before this, FPIs pulled out a massive Rs 1.4 lakh crore. In 2020-2021, FPIs made a record investment of Rs 2.74 lakh crore.
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.
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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