Foreign portfolio investors (FPIs) started February on a positive note but took a U-turn on weak global cues and continued January’s selling streak in Indian markets.
FPIs sold off ₹3,776 crore of Indian shares and the total inflow stands ₹19,608 crore as of February 16, taking into account debt, hybrid, debt-VRR and equities, according to National Securities Depository Ltd (NSDL) data.
FPI activity in Indian markets
FPIs turned massive sellers in January 2024, breaking their buying streak, as investments saw a sharp rise in December 2023 after reversing their three-month selling streak in November 2023.
However, inflows intensified in December on strong global signals after the US Federal Reserve signaled the end of its tightening cycle and raised expectations of a rate cut in March 2024. This led to a crash in US bond yields and triggered foreign funds into emerging markets. like India.
For the entire calendar year 2023, FPIs bought ₹1.71 lakh crore in Indian stocks and the total inflow stands at ₹2.37 lakh crore considering debt, hybrid, debt-VRR and equities, according to NSDL data. The net investment of FPIs in Indian debt market stands at ₹68,663 crore during 2023.
FPI inflows into Indian stocks during November 2023 stood at ₹9,001 crore, compared to over ₹39,000 crore of shares sold in September and October combined, according to NSDL data. Considering debt, hybrid, debt-VRR and equities, FPI inflows were at ₹24,546 crore during the month.
Overall, only four months in 2023 – January, February, September and October – saw net FPI outflows from Indian stocks. May, June and July each recorded FPI inflows above ₹43,800 crores.
Disclaimer: The views and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Business News, Market News, Breaking News and Latest News Updates on Live Mint. Check out all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More or less
Published: 17 Feb 2024, 16:53 IST