Stable macro data, earnings trigger FPI buying

Foreign portfolio investors (FPIs) were net buyers of Indian equities in April, the first month of the new financial year, National Securities Depository Ltd (NSDL) data showed on Friday.

FPIs purchased shares worth 116.31 billion Indian rupees ($1.42 billion) on a net basis in April, the highest since November 2022. They had been net purchasers in the previous month too, though largely due to U.S. investment firm GQG Partners’ $1.87 billion investment in four Adani Group companies in early March.

FPIs Sentiment

“Stronger-than-expected corporate earnings, stable macroeconomic indicators like Purchasing Managers’ Index and GST collection figures have led to return of FPIs into Indian equities,” said Anita Gandhi, director at Arihant Capital Markets.

The benchmark Nifty 50 (.NSEI) jumped 4.06% in April, its best month since November, aided by the stable earnings as well the return of the FPIs into domestic equities.

The recent slide in oil prices also supported sentiment in Indian equities, two analysts added.

FPIs sold equities worth 376.32 billion rupees in fiscal year 2023, marking two straight years of net sales for the first time, after record purchases of 2,740.32 billion rupees in FY2021.


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