V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlights a significant surge in Foreign Portfolio Investors' (FPIs) investments in 2023, primarily attributed to a remarkable uptick in December.
After experiencing negative trends in FPI inflows over the preceding three months, December saw a substantial turnaround with FPIs displaying a positive stance, recording total buying of Rs 66,134 crores. This encompasses investments made through stock exchanges and participation in the primary market. The cumulative FPI inflows for the entirety of 2023 have reached Rs 1,71,106 crores, according to Vijayakumar.
The pivotal factor behind this shift in FPI strategy can be attributed to the consistent decline in US bond yields. December witnessed FPIs significantly investing in financial services, explaining the segment's resilience during this period. Additionally, FPIs displayed interest in sectors like automobiles, capital goods, and telecom.
Anticipating a continued downtrend in US interest rates through 2024, Vijayakumar foresees FPIs augmenting their purchases in the upcoming year, especially in the initial months leading up to the General elections. This proactive stance indicates a potential trajectory for FPI investments in the near future.
(With Agency Inputs)
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