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NEW DELHI: The value of FPIs‘ (Foreign Portfolio Investors) holding in Indian equities reached $738 billion in the three months ended December 2023, marking a surge of 13% from the preceding quarter, driven by the strong performance of the domestic stock market, according to a report by Morningstar.
The value of FPIs investment was at $651 billion in the September quarter of the current fiscal.On a year-on-year basis, the value of such investments rose 26% from $584 billion in December 2022. “This could be attributed to the good performance of the domestic equity markets as well as strong net inflows from FPIs,” the report noted.
However, FPIs’ contribution to Indian equity market capitalisation fell marginally during the quarter under review to 16.83% from 16.95% in the previous quarter. After withdrawing $5.4 billion in the September quarter, foreign investors were net buyers in the Indian equity markets to the tune of $6.1 billion in the three months ended December 2023 owing to the decline in US Treasury bond yields. Also, the listing of IPOs and the fall in crude prices brought foreign investors back.
“The political stability following the Bharatiya Janata Party’s victory in three major state elections created a favorable climate for investors. Additionally, the robust performance of the Indian economy compared to other similar economies drew investor interest,” the report noted.
However, this momentum could not be maintained, and FPIs turned into net sellers in Jan this year and took out $3.1 billion from Indian equities on multiple factors including profit booking. Moreover, cautiousness has continued to prevail so far in Feb.
“The Indian equity markets touched all-time high levels in Jan, which led FPIs to book some profits,” the report noted. agencies
The value of FPIs investment was at $651 billion in the September quarter of the current fiscal.On a year-on-year basis, the value of such investments rose 26% from $584 billion in December 2022. “This could be attributed to the good performance of the domestic equity markets as well as strong net inflows from FPIs,” the report noted.
However, FPIs’ contribution to Indian equity market capitalisation fell marginally during the quarter under review to 16.83% from 16.95% in the previous quarter. After withdrawing $5.4 billion in the September quarter, foreign investors were net buyers in the Indian equity markets to the tune of $6.1 billion in the three months ended December 2023 owing to the decline in US Treasury bond yields. Also, the listing of IPOs and the fall in crude prices brought foreign investors back.
“The political stability following the Bharatiya Janata Party’s victory in three major state elections created a favorable climate for investors. Additionally, the robust performance of the Indian economy compared to other similar economies drew investor interest,” the report noted.
However, this momentum could not be maintained, and FPIs turned into net sellers in Jan this year and took out $3.1 billion from Indian equities on multiple factors including profit booking. Moreover, cautiousness has continued to prevail so far in Feb.
“The Indian equity markets touched all-time high levels in Jan, which led FPIs to book some profits,” the report noted. agencies
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