BackFPIs invest ₹13,540 crore in Indian stocks in 7 days driven by Adani Group's mega block deal
As per NSDL data, FPIs infused ₹13,540 crore in Indian equities from March 1st to 10th.This includes the mega block deal in four companies of the Adani Group.
PremiumForeign portfolio investors (FPIs) are net buyers so far in March. As of now, the month has recorded seven trading sessions and these days FPIs pumped in ₹13,540 crore in Indian equities. This includes the mega block deal in four companies of the Adani Group. Going ahead, FPIs are expected to likely hold a cautious tone in their approach to the market due to the crisis in Silicon Valley Bank.
As per NSDL data, FPIs infused ₹13,540 crore in Indian equities from March 1st to 10th.
Trading in the Indian market was held between March 1-3, March 6th, and then March 8-10. Markets were closed on March 4-5 due to the weekend, and on March 7th owing to the Holi festival.
Foreign portfolio investors (FPIs) are net buyers so far in March. As of now, the month has recorded seven trading sessions and these days FPIs pumped in ₹13,540 crore in Indian equities. This includes the mega block deal in four companies of the Adani Group. Going ahead, FPIs are expected to likely hold a cautious tone in their approach to the market.
As per NSDL data, FPIs infused ₹13,540 crore in Indian equities from March 1st to 10th.
Trading in the Indian market was held between March 1-3, March 6th, and then March 8-10. Markets were closed on March 4-5 due to the weekend, and on March 7th owing to the Holi festival.
It is most likely that the majority of the buying from FPIs came between March 1st to 3rd after the mega block deal in Adani companies. In the week that ended March 3rd, NSDL data showed that FPIs infused ₹8,939 crore in the equities.
During that week, mega-buying from foreign investors in Adani Enterprises, Adani Green Energy, Adani Ports, and Adani Transmission lifted overall market sentiments. US-based GQG Partners purchased equity shares in these Adani companies for a massive ₹15,446 crore in a series of secondary block deals.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "FPIs have invested ₹13586 crores through exchanges in the Indian market through 10th March 2023. But this is inclusive of the bulk investment of ₹15446 crores by GQG in the four Adani stocks. So the net of bulk deals FPIs continued to sell in India, so far in March too, even though the intensity of selling has subsided."
Year-to-date, FPIs are net sellers in domestic equities with an outflow of ₹20,606 crore.
Coming to foreign institutional investors (FIIs), are also net buyers with an inflow of ₹6,929.35 crore in Indian equities, as per Stock Edge data.
Between March 6th to 10th, FIIs bought ₹1,211.97 crore. While from February 27th to March 3rd week, FIIs inflow stood at ₹6,010.44 crore.
Last week, Sensex dropped by 671.15 points or 1.12% to end at 59,135.13. While Nifty 50 plunged by 172.85 points or 0.98% to close at 17,416.75 on Friday. Between March 6th to 10th, overall, Sensex dipped by nearly 310 points or 0.52%, while Nifty 50 tumbled by 54.40 points or 0.31%.
At the interbank forex market, the rupee closed the week at a broadly subdued level compared to the previous week. The currency managed to escape the steep losses in Asian peers that occurred due to the strengthening in the dollar index on rate hike fears. On Friday, the rupee closed at 82.04 per dollar --- compared to the previous day's print of 81.9750. For the week, the rupee ranged between 81.60 to 82.30 -- and closed overall with just a 0.1% upside.
Explaining the trend in FPIs further, Vijayakumar said, an important feature of FPI activity is that there is no consistency in FPI activity. For instance, FPIs were buyers in the first half of February in financial services and sellers in the second half. Similarly, they were buyers in IT in the first half and sellers in the second half. In oil and gas, they were sellers in the first half and buyers in the second half. All data relates to February. This shows that their activity was not in response to the performance or prospects of these sectors.
However, he also said, a consistent trend is FPIs have been buyers of capital goods stocks. This explains the strength of the capital goods segment even in a weak market.
Going ahead, Vijayakumar said, "the collapse of the SVB Bank in the US has impacted sentiments in the market. So, FPIs are likely to be cautious in their approach in the coming days."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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