Following the remarkable surge in Foreign Portfolio Investor (FPI) inflows in December 2023, amounting to Rs 58,372 crore, the momentum has notably decelerated in the early days of January 2024, according to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Based on data from the National Securities Depository Limited (NSDL), the total FPI investment through stock exchanges as of January 13 stands at Rs 2,743 crores, as conveyed by Vijayakumar. In the previous month, FPIs displayed substantial interest in financial services and the IT sector. Moreover, FPIs made significant purchases in other sectors such as autos, capital goods, oil and gas, and telecom.
This prevailing trend is anticipated to persist in the coming months. Anticipating further declines in US interest rates throughout 2024, FPIs are poised to intensify their investments, particularly in the initial months leading up to the general elections. Additionally, there is an expectation of an accelerated FPI investment in debt instruments in the foreseeable future, as highlighted by Vijayakumar.
(With Agency Inputs)
Read also| Market Dynamics: Indian Equity Markets Witness Dominance of Bulge Bracket FPIs
Read also| Foreign Portfolio Investors Maintain Aggressive Buying Stance in January as Well
