FPI: Interest of foreign investors increased in Indian stock market, investment of Rs 37316 crore in May

Foreign investors (FPIs) have so far invested Rs 37,316 crore in the Indian stock market. The attraction of FPIs towards Indian markets is increasing, the reason behind this is strong macroeconomic fundamentals and reasonable valuations of stocks. This is the highest investment by FPIs in the last six months. Earlier, FPIs had made a net investment of Rs 36,239 crore in equities in November 2022. This is known from the data available with the depositories.
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said that going forward US debt ceiling and domestic macro-economic data could prove to be positive for the market. Due to this, the flow of foreign investors can be encouraged.
Shrey Jain, CEO of SAS Online, said that the outlook for FPI flows has improved significantly. This is because of the completion of the Quantitative Tightening Cycle in the US and the better performance of the Indian market as compared to the global markets.
According to depository data, FPIs made a net investment of Rs 37,317 crore in Indian stocks during May 2-26. Earlier, he invested Rs 11,630 crore in equities in April and Rs 7,936 crore in March.
America's GQG Partners made the maximum investment in March. He had invested in Adani group companies. If the US-based GQG partner's investment is removed, the net investment will be negative.
Apart from this, in the first two months of this year, FPIs had withdrawn more than Rs 34,000 crore from stocks. Apart from shares, FPIs have infused Rs 1,432 crore in the debt market so far in May. With this fresh inflow, FPI investments have reached Rs 22,737 crore so far in 2023.
FPIs have bought shares in sectors such as automobile, capital goods, healthcare, oil and gas, and telecom. In addition, it has bought more shares in financial services, especially banking.