FPIs invest Rs. 3,900 crore in equities from January 1-12
Foreign portfolio investors (FPIs) cautiously invested around Rs. 3,900 in Indian stocks between January 1 and 12 this year amid uncertainty regarding the interest rate scenario. This represents a slowdown in investment compared to the substantial Rs. 66,134 crore attracted throughout December. Prior to that, in November, FPIs injected Rs. 9,000 crore into the market.
Maintaining positive stance on debt market
Meanwhile, FPIs remain optimistic about the debt market. During the said period, they infused Rs. 7,912 crore. This follows a net investment of Rs. 18,302 crore in December, Rs. 14,860 crore in November, and Rs. 6,381 crore in October, as indicated by the data. This influx into India's bond markets has seemingly been influenced by JP Morgan Chase & Co.'s announcement in September that it will add Indian government bonds to its benchmark emerging market index from June 2024.
Take a look at total FPI flows in 2023
In 2023, the cumulative FPI inflows amounted to Rs. 1.71 lakh crore in equities and Rs. 68,663 crore in debt markets. Collectively, these investments brought Rs. 2.4 lakh crore to the capital market. The surge in Indian equities marked a significant turnaround from the substantial net outflow of Rs. 1.21 lakh crore in 2022, driven by aggressive rate hikes by central banks worldwide. FPIs had been actively investing in the market for the preceding three years as well.
