FPIs Bought Over Rs 3,000 Crore Of Indian Stocks In First Half Of January

Foreign portfolio investors kicked off the new year on a cautious note, investing Rs 3,433 crore in Indian equities during the first half of January. This move comes amid increased geopolitical tensions, reflecting a careful approach by investors even as the market continues to hit fresh record highs.

Inflows have slowed from what was witnessed in December 2023, when overseas investors poured in record funds worth Rs 66,135 crore.

The markets witnessed a fresh high on Monday; the Nifty 50 breached a new record and scaled the milestone of 22,000, while the S&P BSE Sensex crossed the 73,000 mark for the first time.

‘’The trend is likely to continue going forward. Since 2024 is expected to witness further declines in US interest rates, FPIs are likely to increase their purchases in 2024, particularly in the early months of 2024 in the run-up to the general elections. FPI investment in debt is likely to accelerate going forward,'' said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Foreign investors maintain a positive outlook on the debt market, injecting Rs 10,525 crore during the period under review, according to NSDL data.

The surge in debt flows is attributed to the inclusion of domestic bonds in JPMorgan's Emerging Market Global Bond Index. This factor has significantly influenced the increased flow of funds into the country's bond markets in recent months

India received the highest-ever foreign portfolio inflows in 2023 and surpassed emerging market peers amid global volatility and valuation concerns.