FPI’s INFLOW
In the final two weeks of March, banking turmoil in the US and Europe slowed foreign portfolio investor (FPI) inflows into Indian stocks. Domestic equity FPI inflows totaled 7,233 crore by March 24, when the Sensex and Nifty 50 both fell by nearly 3%. In the short term, FPIs are expected to remain cautious.
FPI inflow 7,233 crore in equity as of March 24, 2023, according to NSDL data. It is lower by 4,262 crores than the 11,495 crores that were reported at the end of the business week that ended on March 18.
From March 1 to March 10, Adani’s companies led FPI inflows of Rs 15,446 crore and Rs 13,540 crore into the overall market as a result of the mega block deal.
However, the market sentiment has been ruined by the bank war that broke out following the failure of two US banks. Between March 11 and March 24, FPI inflows have decreased. $6,307 billion.
According to Geojit Financial Services’ Chief Investment Strategist, Dr. VK Vijayakumar, “FPIs have invested until the 25th of March.” 6192 crore (NSDL) with the block deal included. They have purchased power, metals, mining, auto parts, financial services, and automobiles. In IT, FPI sold a lot.
“With the exception of China, which continued to see inflows due to open trade,” he added, “FPIs were sellers throughout the month.”
In addition, the Nifty 50 has lost nearly 506 points, or 2.9%, while the Sensex has lost 1,884 points, or 3.2%, so far in March.
The Sensex ended the previous week on Friday at 57,527.10, down 398.18 points or 0.69 percent. The Nifty 50 ended the day at 16,945.05, a decrease of 131.85 points, or 0.77%.
Going ahead, Vijayakumar said, “FPIs are probably going to stay wary in the close to term as hazard avoidance in value advertises universally because of stress in the US banking framework and fall in financial stocks.”
It would “primarily target the front-facing sectors of the domestic economy such as banking, capital goods, and autos” in India, he stated.
“A reverse trend in favor of IT and pharmaceuticals is likely in the near term as valuations of these segments have become attractive after the recent correction,” was the conclusion offered by Vijayakumar.
With Rs 26,913 crore in outflows so far this year, FPIs are net sellers of Indian stocks.
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