Mumbai
Experts believe foreign portfolio investors (FPIs) will keep a close watch on how India manages to keep Covid-19 cases under check with relaxations in lockdown curbs, and how quickly it revives growth.
The inflow comes following a net withdrawal of Rs 6,883 crore in April and Rs 61,973 crore in March on fears of a coronavirus-induced global recession.
Prior to that, foreign portfolio investors (FPIs) had put in over Rs 1,820 crore in February.
According to depositories data, FPIs invested a net sum of Rs 9,089 crore in the equity markets during May 1-22. However, they pulled out a net Rs 21,418 crore from the debt markets during the period under review. “FPIs are selectively positive on only few Indian equities in the current month.
Positive FPI flow in the month of May is only due to strong participation by FPI in mega HUL block
deal of Rs 25,000 crore on May 7.
“FPIs were net sellers in the Indian equity market in last 12 out of total 15 trading sessions in May,” said Asutosh Mishra, head of research at Ashika Stock Broking. “Attractive valuation after the sharp correction in the equity markets this year, and significant depreciation of Indian rupee against USD provided FPIs a good entry point,” said Himanshu Srivastava, Senior Analyst Manager Research, Morningstar India.
Visit news.dtnext.in to explore our interactive epaper!
Download the DT Next app for more exciting features!
Click here for iOS
Click here for Android