FPIs extend buying streak in Indian equities in June: NSDL – Times of India

BENGALURU: Foreign portfolio investors (FPIs) continued to buy Indian equities in the new financial year, having purchased shares worth 131.24 billion rupees ($16 billion) on a net basis in the first half of June, data from the National Securities Depository Ltd (NSDL) showed on Wednesday.
FPIs have added stocks worth Rs 765.28 billion ($93.31 billion) over the last four months. The buying powered the Nifty 50 8% higher between March 1 and June 15, with the benchmark logging gains in each of the last four months.
FPIs were net purchasers over the period, largely due to US investment firm GQG Partners’ $1.87 billion investment in four Adani group companies, stable quarterly earnings and cooling inflation.
“FPI buying is here to continue after a record outflow from Indian equities in the previous two financial years,” said Siddhartha Khemka, head – retail research at Motilal Oswal Financial Services.
Concerns over China’s economic recovery have also aided flows into India, said Sameer Kaul, MD and CEO at TrustPlutus Wealth (India) Pvt.
WHAT FPIs BOUGHT IN MAY
After selling shares worth Rs 299.93 billion belonging to financial services companies in the financial year 2023, FPIs bought equities worth Rs 55.23 billion in the first half of June in the sector.
They bought shares worth Rs 176.71 billion in May and Rs 76.90 billion in the sector in April.
Auto, capital goods and consumer durables were the other sectors that saw interest from FPIs in June.
Foreigners, however, offloaded information technology and metal stocks. “Near-term uncertainty has derailed FPI buying in information technology and lack of clarity on China growth recovery has led to outflows in metal stocks,” added Motilal’s Khemka.
“FPI inflows in Indian equities will remain strong in fiscal 2024 after the record sale of nearly 4 trillion rupees over the last three years,” said Varun Saboo, Head – Equities, Anand Rathi Shares and Stock Brokers.