New Delhi: Foreign portfolio investors became aggressive buyers in the last days of April. FPIs have bought equity worth Rs 9,752 crore till April 29. VK Vijayakumar, chief investment strategist, Geojit Financial Services, said that FPIs have changed their investment strategy in India in recent times.
While they were sellers in the first three months of this year, they have turned buyers in April and have become aggressive buyers in the last days of April. FPIs have bought equity worth Rs 9,752 crore till April 29. ,ALSO READ: Actor Shah Rukh Khan fined for promoting BYJU’s false coaching promise,
Vijayakumar said an important macro factor that has tilted the outlook for FPIs is the appreciation of the rupee. ,Also Read: Apple Store India Employee Salary, Educational Qualification & Other Details,
The rupee which had touched a low of 82.94 (INR) against the dollar at the end of February this year has now moved up to Rs 81.75 against the dollar. India’s current account deficit is narrowing and if this trend continues, the rupee may strengthen further.
In this context, FPI is likely to bring more inflows into India. He said FPIs are buying in financial services and auto and auto components.
The monthly economic review for March released by the finance ministry said reduction in CAD, increased foreign portfolio investment (FPI) inflows led to a build-up in foreign exchange reserves by the end of the third quarter of 2022-23.
With further accretion to foreign exchange reserves by the end of 2022-23, prospects for further easing of the CAD in Q4:2022-23 are bright.
Even as external stability strengthened, factors contributing to internal stability also improved.
The document states that fiscal parameters for the Center and states in 2022-23 remain robust, as seen in solid revenue generation and improvement in the quality of expenditure.