FPIs invest ₹3,864 crore in Indian equities so far in January; Will inflows sustain in 2024?
₹3,864 crore worth of Indian equities and the total inflow stands at ₹9,034 crore as of January 12, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. FPIs were big players in financial services and information technology (IT), according to analysts. "The surge in FPI inflows during December 2023 which stood at ₹58,372 crore, slowed down in early January 2024.
As per NSDL data, total FPI investment through the stock exchanges in January up to 13th is ₹2,743 crore,'' said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. The inflow intensified last month on strong global cues after the US Federal Reserve signalled the end of its tightening cycle and raised expectations of a rate cut in March 2024.
This led to a crash in US bond yields and triggered foreign fund inflows into emerging markets like India. In December, FPIs were big buyers in financial services and also in IT. FPIs also bought in sectors like autos, capital goods, oil and gas and telecom, according to Dr.
V K Vijayakumar. For the entire calendar year 2023, FPIs bought ₹1.71 lakh crore in Indian equities and the total inflow stands at ₹2.37 lakh crore taking into account debt, hybrid, debt-VRR, and equities, according to NSDL data. FPIs' net investment in Indian debt market stands at ₹68,663 crore during 2023.
FPI inflows into Indian equities during November 2023 stood at ₹9,001 crore, compared to over ₹39,000 crore worth of shares sold in September and October together, according to NSDL data. Taking into account debt, hybrid, debt-VRR, and equities, FPI inflows were at ₹24,546 crore during the month. Overall, only four months in 2023--January, February, September,
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