FPIs extend buying streak in Indian equities in June, shows NSDL data

By Bharath Rajeswaran

BENGALURU (Reuters) - Foreign portfolio investors (FPIs) continued to buy Indian equities in the new financial year, having purchased shares worth 131.24 billion rupees ($1.60 billion) on a net basis in the first half of June, data from the National Securities Depository Ltd (NSDL) showed on Wednesday.

FPIs have added stocks worth 765.28 billion rupees ($9.33 billion) over the last four months. The buying powered the Nifty 50 8% higher between March 1 and June 15, with the benchmark logging gains in each of the last four months.

FPIs were net purchasers over the period, largely due to U.S. investment firm GQG Partners' $1.87 billion investment in four Adani group companies, stable quarterly earnings and cooling inflation.

"FPI buying is here to continue after a record outflow from Indian equities in the previous two financial years," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

Concerns over China's economic recovery have also aided flows into India, said Sameer Kaul, MD and CEO at TrustPlutus Wealth (India) Pvt.

WHAT FPIs BOUGHT IN MAY

After selling shares worth 299.93 billion rupees belonging to financial services companies in the financial year 2023, FPIs bought equities worth 55.23 billion rupees in the first half of June in the sector.

They bought shares worth 176.71 billion rupees in May and 76.90 billion rupees in the sector in April.

Auto, capital goods and consumer durables were the other sectors that saw interest from FPIs in June.

Foreigners, however, offloaded information technology and metal stocks. "Near-term uncertainty has derailed FPI buying in information technology and lack of clarity on China growth recovery has led to outflows in metal stocks," added Motilal's Khemka.

"FPI inflows in Indian equities will remain strong in fiscal 2024 after the record sale of nearly 4 trillion rupees over the last three years," said Varun Saboo, Head - Equities, Anand Rathi Shares and Stock Brokers. ($1 = 82.0075 Indian rupees)

 

(This story has been corrected to fix the conversion to $1.6 billion from $16 billion in paragraph 1, and to $9.33 billion from $93.31 billion in paragraph 2)

 

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sohini Goswami)