Foreign portfolio investors (FPIs) continued their buying spree for the third straight month. In the first two weeks of April, FPIs have pumped in Rs 13,347 crore into the equity markets With this, the net investment of FPIs in the equity markets in the calendar year 2024 has gone up to Rs 24,240 crore. Marketmen said FPIs continued to invest in the domestic equity markets due to the resilience of the Indian economy with promising growth prospects.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the amendments to the India-Mauritius tax treaty will impact FPI investments in the short term. It can be improved once the details of the new treaty are out. Besides, the geopolitical situation in West Asia and rising tensions between Iran and Israel are also concerns for FPI investments. However, domestic institutional investors (DIIs) have access to large amounts of cash. Retail and high net worth (HNI) are also very promising for the Indian markets. In such a situation, the sale made by FPIs will be compensated by domestic investment.
FPIs had earlier invested Rs 35,098 crore in March and Rs 1,539 crore in February in the equity markets However, it had withdrawn Rs 25,744 crore in January this year. During the entire calendar year 2023, FPIs had made a net investment of Rs 1,71,107 crore in equity markets. During this period, there were four months when FPIs had invested more than Rs 40,000 crore in equities. During December 2023, FPIs had invested the highest amount of Rs 66,135 crore in equity markets.
