Last Updated: March 26, 2023, 11:38 IST
The stress appeared within the US banking system after the collapse of Silicon Valley Bank and Signature Bank earlier this month. (Representative picture)
According to the info with the depositories, overseas portfolio traders (FPIs) invested Rs 7,233 crore in Indian equities until March 25.
Foreign traders have pumped Rs 7,200 crore into the Indian equities up to now this month, primarily pushed by bulk funding within the Adani Group firms by the US-based GQG Partners.
Going forward, FPIs are prone to be cautious within the close to time period since there’s a risk-off sentiment in fairness markets globally because of the stress within the US banking system and the crash in banking shares, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated.
The stress appeared within the US banking system after the collapse of Silicon Valley Bank and Signature Bank earlier this month.
Most world fairness markets witnessed a pointy restoration, at the same time as macro sentiments remained unstable as frailties in European and US banks had been underneath focus.
“On the economic system entrance, the US Federal Reserve elevated the Fed Fund charges by 25 foundation factors whereas voicing confidence within the stability of the US monetary system. FPIs movement are anticipated to stay unstable given the tight central financial institution financial coverage,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, stated.
According to the data with the depositories, foreign portfolio investors (FPIs) invested Rs 7,233 crore in Indian equities till March 25.
This came after a net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January. Prior to that, FPIs infused a net amount of Rs 11,119 crore in December, data showed.
The inflow in March is inclusive of the bulk investment of Rs 15,446 crore by GQG in the four Adani stocks, Vijayakumar said.
Excluding this, FPI activity in equities represents a strong selling undercurrent.
In the calendar year 2023, FPIs have sold equities to the tune of Rs 26,913 crore.
On the other hand, FPIs pulled out Rs 313 crore from the debt markets during the period under review.
In terms of sectors, FPIs have been buyers in autos and auto components, financial services, metals and mining and power. However, they sold heavily in IT stocks.
In India, inflows will be mainly targeted at domestic economy-facing sectors like banking, capital goods and autos, Geojit’s Vijayakumar said.
A contrarian trend in favour of IT and pharmaceuticals is likely in the near term since the valuations of these segments have turned attractive after the recent corrections, he added.
During the month, FPIs have been sellers in most emerging markets except China, which continues to witness inflows due to the opening-up of trade.
Also, India and Indonesia witnessed inflows during the month under review, while the Philippines, South Korea, Taiwan and Thailand saw a net withdrawal.
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(This story has not been edited by News18 workers and is printed from a syndicated information company feed)
