Foreign portfolio investors (FPIs) closed the month of February as net sellers 5,200 crore in Indian equity. However, there has been vigorous buying by FPIs in the beginning of March. FPI has invested more between March 1 and March 3 8,300 crore in equity. The strong buying in the early days of the current month could be on account of large inflow of foreign investors in the four Adani firms. Bond yields are likely to worsen for foreign fund inflows into domestic equities going forward.
As per NSDL data, FPI pulled out 5,294 crore from equity during the overall February month. while they were net buyers in the debt market 2,436 crores this month.
In the month of January, stood on the outflow 28,852 crore from equity.
Meanwhile, FPIs have invested heavily in the first three trading sessions (1st to 3rd) of March. Rs 8,939 crore Indian equityWhile their purchases in debt instruments have been merely 380 crores.
Last week, mega-buying from foreign investors Adani Enterprises, Adani Green Energy, Adani Ports and Adani Transmission lifted the overall market sentiments. US-based GQG Partners buys massive equity shares in these Adani companies 15,446 crore in a series of secondary block deals.
Overall, in the week of February 27 to March 3, Indian equities saw inflows 6,010.44 crore from foreign institutional investors (FIIs). FII sold 2,022.52 crore on February 27, while the outflow was on 4,559.21 crore on 28 February and 424.88 crores on 1st March. Although they shopped heavily 12,770.81 crores on March 2 followed by another inflow 246.24 crores on 3rd March.
FII sold in the month of February There was a huge outflow of Rs 11,090.64 crore compared to the previous month 41,464.73 crore as per Stock Age data.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “FPI selling continued in early March as well. However, the data (NSDL) shows net FPI figure. 8902 crores till 4th March. The discrepancy is largely due to investment by US-based investment firm GQG 15446 crore in four shares of Adani.
However, Vijayakumar also said, “Barring this, FPIs remain sellers 6544 crore till 4th in March. Except GQG investment, FPIs have sold equities 41169 crores in 2023.
The overall weekly performance of Sensex was up by 1.3% and Nifty 50 by 0.9%, on the back of vigorous buying in the last trading session of last week. After gaining nearly 2% on Friday, the Sensex closed at 59,808.97, up 899.62 points, or 1.53%, and the Nifty 50 closed at 17,594.35, up 272.45 points, or 1.57%.
Going forward, Vijayakumar said, “FIIs are likely to sell at higher levels as the US 10-year bond yield is at 4% and it is an attractive risk-free investment for FPIs. FPIs remained buyers in financials, capital goods and Auto and dealer in oil and gas and metals.”
Year-to-date, FPIs are net sellers 21,256 crores. It comes after inclusion, the outflow of 25,207 crore in Indian equity, 1,964 crore in loan-VRR, and 431 cr in the hybrid market — adding more inflows as well 6,347 crore in the debt market.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.