FPI investment in India: After withdrawing 1.5 lakh crores for 6 months, FPI has started investing again

FPI investment in India: After six months of continuous selling, foreign portfolio investors (FPIs) have made a net investment of Rs 7,707 crore in the Indian stock markets so far in April. The ‘correction’ in the stock markets has given good buying opportunities to FPIs, making them net buyers this month. Himanshu Srivastava, Associate Director, Manager-Research, Morningstar India, said that it is too early to call FPI inflows a trend change. We will have to wait for the next few weeks or months for things to become more clear on this front.

FPI investment in India

According to depository data, foreign portfolio investors have invested a net Rs 7,707 crore in Indian equities during April 1-8. Srivastava said the inflows of FPIs indicate that they have completed the revaluation of their portfolios. Apart from this, the recent ‘correction’ in the stock markets has also opened up investment opportunities for them.

However, in the last two trading sessions, FPIs have sold. In such a situation, the situation regarding the direction of FPI flow is not clear yet. Earlier, in the six months from October 2021 to March 2022, FPIs had pulled out a net Rs 1.48 lakh crore from equities. Apart from equities, FPIs have also infused Rs 1,403 crore into the bond or debt market during the period under review. Due to this, during the last two months (February-March), he had withdrawn Rs 8,705 crore from the bond market.

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