Foreign Portfolio Investment: Foreign investors have sold 6 consecutive months in the Indian stock market. After continuous selling, the month of April has started with some relief. In the month of April, FPI investors (FPIs) have so far made a net investment of Rs 7,707 crore in the stock market. The ‘correction’ in the stock markets has given FPIs a good buying opportunity, making them net buyers this month.
Know what is the opinion of experts?
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.
Foreign investors invested 7700 crores
According to depository data, foreign portfolio investors have invested a net Rs 7,707 crore in Indian equities during April 1-8.
Gained benefit of market correction
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.
Money withdrawn from the bond market in February-March
Let us tell you that in the six months from October, 2021 to March, 2022, FPIs had withdrawn a net Rs 1.48 lakh crore from the shares. 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 Due to this, during the last two months (February-March), he had withdrawn Rs 8,705 crore from the bond market.