April saw FPIs invest Rs 8,643 crore in equities

This month, foreign portfolio investors (FPIs) have infused Rs 8,643 crore into the Indian equity markets due to their reasonable valuations.

Since April 3, foreign portfolio investors have invested Rs 8,643 crore in Indian equities.

According to Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, the situation for economies like India is generally favourable in terms of FPI inflows.

After the consolidation of Indian equities, FPIs are investing in Indian stocks due to a reasonable valuation. Another market expert believes valuations have become more palatable based on NSE 50 returns of almost zero in the past 17-18 months.

During the fortnight that ended April 15, FPIs heavily purchased financial stocks for Rs 4,410 crore. As well as purchasing automobiles, they purchased capital goods as well. IT stocks also saw buying interest, although it was marginal.

Over the course of 2022-23, FPIs withdrew a net amount of Rs 37,631 crore from Indian equities due to aggressive rate hikes by central banks worldwide, compared with a record amount of Rs 1.4 lakh crore withdrawn in 2021-22. FPIs invested a record Rs 2.7 lakh crore in equities in 2020-21 and Rs 6,152 crore in 2019-20 before these outflows.

Most major central banks started hiking interest rates in the financial year 2022-23, which resulted in hot money leaving emerging markets, including India. In most economies, this led to an unprecedented rise in prices (inflation).

As a result of tightening global monetary policy, volatile crude oil prices, rising commodity prices, and the Russia-Ukraine conflict, foreign money was expelled from the region in 2022-23.