FPIs invest ₹7,200 cr in Indian equities in March so far

Foreign investors have pumped ₹7,200 crore into the Indian equities so far this month, mainly driven by bulk investment in the Adani Group companies by the U.S.-based GQG Partners.

Foreign investors have pumped ₹7,200 crore into the Indian equities so far this month, mainly driven by bulk investment in the Adani Group companies by the U.S.-based GQG Partners.

Going ahead, FPIs are likely to be cautious in the near term since there is a risk-off sentiment in equity markets globally due to the stress in the U.S. banking system and the crash in banking stocks, V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

The stress appeared in the U.S. banking system after the collapse of Silicon Valley Bank and Signature Bank earlier this month.

Most global equity markets witnessed a sharp recovery, even as macro sentiments remained volatile as frailties in European and U.S. banks were under focus.

"On the economy front, the U.S. Federal Reserve increased the Fed Fund rates by 25 basis points while voicing confidence in the stability of the U.S. financial system. FPIs flow are expected to remain volatile given the tight central bank monetary policy," Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said.

According to the data with the depositories, foreign portfolio investors (FPIs) invested ₹7,233 crore in Indian equities till March 25.

This came after a net outflow of ₹5,294 crore in February and ₹28,852 crore in January. Prior to that, FPIs infused a net amount of ₹11,119 crore in December, data showed.