FPIs inflow falls to over ₹7,200 cr as Sensex and Nifty dive 3% in Mar so far
2 min read 26 Mar 2023, 01:07 PM ISTAs per NSDL data, FPIs inflow stood at ₹7,233 crore in equities as of March 24, 2023. This is lower by ₹4,262 crore --- compared to the inflow of ₹11,495 crore that was reported by end of the trading week that ended on March 18th.
PremiumForeign portfolio investors (FPIs) inflow continued to reduce in Indian equities as bears dampen the mood in the past two weeks of March due to banks turmoil in the US and Europe. By end of March 24th, FPIs inflow stood at ₹7,233 crore in domestic equities as Sensex and Nifty 50 tumbled around 3% each. FPIs are expected to continue to be cautious in the near term.
As per NSDL data, FPIs inflow stood at ₹7,233 crore in equities as of March 24, 2023. This is lower by ₹4,262 crore --- compared to the inflow of ₹11,495 crore that was reported by end of the trading week that ended on March 18th.
In the initial days, due to a mega block deal of ₹15,446 crore in Adani companies had led FPIs inflow at ₹13,540 crore in the overall market from March 1st to March 10th.
But banks contagion which sparked after two banks' failure in the US, has turned the market sentiment sour. From March 11th to 24th, FPIs inflow has reduced by ₹6,307 crore.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "in March till 25th FPIs have invested ₹6192 crores (NSDL) inclusive of the block deals. They have been buyers in autos and auto components, financial services, metals, and mining and power. FPIs sold heavily in IT."
He added, "during the month, FPIs have been sellers in most emerging markets except China which continues to witness inflows due to the opening-up trade."
Also, so far in March, Sensex has shed 1,884 points or 3.2%, while Nifty 50 has tumbled by nearly 506 points or 2.9%.
Last week, on Friday, Sensex ended at 57,527.10 down by 398.18 points or 0.69%. Nifty 50 dipped by 131.85 points or 0.77% to end at 16,945.05.
Going ahead, Vijayakumar said, "FPIs are likely to be cautious in the near-term since there is a risk-off in equity markets globally due to the stress in the US banking system and crash in banking stocks."
In India, he added, "will be mainly targeted at domestic economy-facing sectors like banking, capital goods, and autos."
Lastly, Vijayakumar said, " a contrarian trend in favour of IT and pharmaceuticals is likely in the near term since the valuations of these segments have turned attractive after the recent corrections."
Year-to-date, FPIs are net sellers in Indian equities with an outflow of RS 26,913 crore.
