FPI Investment: Foreign investors turned to the Indian stock market, invested a record 11,631 crores in April

New Delhi: In the Indian stock market this year i.e. in 2023, foreign investors have made record purchases in April. Foreign investors have made maximum investment. Foreign portfolio investors (FPIs) made maximum purchases of Rs 11,631 crore in Indian equities in April 2023. This is the second consecutive month when foreign investors have invested money. Foreign portfolio investors (FPIs) had earlier invested a net Rs 7,936 crore in stocks in March. However, most of this investment was made by US-based GQG Partners in Adani group companies. If GQG’s investments in Adani group companies are removed, then the FPI investment flow will remain negative in the last month as well.

Sonam Srivastava, founder of investment advisory company Wright Research, said that going forward, the tight monetary policy of the US Federal Reserve will keep FPI flows volatile. He said that the Federal Reserve has indicated to increase the interest rate by 0.25 per cent in the upcoming meeting, which may affect the flow of FPI.

According to the depository data, FPIs have infused a net Rs 11,630 crore in stocks in the first month of the current financial year. FPI buying activity remained strong in the first fortnight of April, indicating confidence in the Indian stock market. However, rising interest rates and weak economic indicators in the US weighed on FPI sentiment in the third week of the month.

Fizzdom co-founder Anand Dalmia said that in the last few days of April, FPIs again bought aggressively. Hence, their investment flows are expected to continue in the long term. Apart from equities, FPIs have invested Rs 805 crore in the debt or bond market during the period under review.