Business

Adani Shares Block Deal Helps FPIs Investment Into Equities Turn Positive In March

Reversing their selling trend, foreign investors have infused over Rs 13,500 crore in the Indian equities so far this month primarily driven by bulk investment from US-based GQG Partners in the Adani Group companies.

This came following a net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January. Prior to that, FPIs made a net investment of Rs 11,119 crore in December, data with the depositories showed.

Going ahead, FPIs are likely to be cautious in their approach in the coming days as the collapse of the SVB Bank in the US has impacted sentiments in the market, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Adani Shares: According to the data

Foreign Portfolio Investors (FPIs) invested Rs 13,536 crore in Indian equities till March 10. “This (inflow) is inclusive of the bulk investment of Rs 15,446 crore by GQG in the four Adani stocks,” Vijayakumar said.

Also, Nirav Karkera, Head of Research at Fisdom, said that a large share of the inflows is attributable to chunky block deals buying into the Adani group entities during the first week of the month itself.

Excluding this, FPI activity in equities represents a strong selling undercurrent. However, the intensity of the selling has subsided. Himanshu Srivastava, Associate Director – Manager Research at Morningstar India, attributed the latest inflows to better prospects of Indian equities over longer time frames.

Although like many other countries, India has also been going through a rate hike cycle given high inflation levels, it is still perceived to be relatively better placed with respect to macro conditions compared with other markets.

In addition, there has been an enhanced focus of the government on capital expenditure and achieving higher GDP growth, which could potentially improve India’s fiscal condition, he said.

Also read: 12 March 2023: Petrol-Diesel Rates Remain Unchanged Today, Check Prices

In the calendar year 2023, FPIs have sold equities to the tune of Rs 20,606 crore. On the other hand, FPIs pulled out Rs 2,987 crore from the debt markets during the period under review.

In terms of investing in sectors, there is no consistency in FPI activity. For instance, FPIs were buyers in financial services in the first half of February and sellers in the second half. Similarly, they were buyers in IT in the first half and sellers in the second half, Geojit Financial Services’ Vijayakumar said.

Shruti Chaturvedi

Recent Posts

Renowned Folk Singer Sharda Sinha Passes Away At 72; PM Modi Expresses Condolences

PM Modi expressed sorrow over Sinha’s death. "The passing of Sharda Sinha ji is deeply…

6 hours ago

US Election: India Confident Of Strong US Relations And Quad Continuity, Says Jaishankar

Jaishankar noted that the US-India relationship has flourished under both Democratic and Republican leadership, including…

7 hours ago

Sanskriti Diwas Marks 98th Birth Anniversary Of Kashiraj Dr Vibhuti Narayan Singh

Program coordinator Chakravarti Vijay Navad announced that 11 prominent individuals received the Kashiraj Dr. Vibhuti…

7 hours ago

Mallikarjun Kharge Slams ‘Batenge Toh Katenge’ Slogan During Jharkhand Campaign

Kharge emphasized that the BJP leaders promote divisive rhetoric as part of their agenda. He…

9 hours ago

Police Arrest Two In Fake Marriage Certificate Racket In Name Of Arya Samaj

DCP Nagar Abhishek Bharti revealed that five couples, including Shivani and Shrikant Yadav, recently filed…

9 hours ago

India And Nigeria Strengthen Counter-Terrorism Cooperation In Second Strategic Dialogue

Doval and Ribadu held detailed talks on challenges linked to terrorism and radicalization, including those…

10 hours ago