Are FPIs Driving the Highest Single-Day Inflows in Indian Equities?
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Synopsis
On May 17, Foreign Portfolio Investors (FPIs) made headlines with a remarkable investment of Rs 8,831.1 crore in Indian equities. This surge marks the highest single-day inflow since March 27, highlighting a renewed confidence among foreign investors amidst global uncertainties. What does this mean for the Indian market's future?
Key Takeaways
- FPIs invested Rs 8,831 crore in Indian equities, the highest since March.
- Confidence among foreign investors is increasing amidst global uncertainties.
- Domestic institutional investors were also net buyers.
- Both Nifty and Sensex recorded substantial weekly gains despite a slight decline on Friday.
- Market analysts anticipate future resistance levels for the Nifty.
Mumbai, May 17 (NationPress) Foreign Portfolio Investors (FPIs) have maintained their buying momentum in Indian equities for the third consecutive session on Friday, acquiring shares valued at Rs 8,831.1 crore -- marking the highest single-day inflow since March 27, according to provisional data released by the National Stock Exchange (NSE) on Saturday.
This significant FPI inflow underscores the increasing confidence foreign investors have in Indian markets, particularly in light of prevailing global uncertainties.
On Thursday, FPIs had purchased shares worth Rs 5,746.5 crore, resulting in a total net inflow of Rs 18,620 crore for May thus far.
This represents a notable uptick from April, during which foreign investors net bought equities valued at Rs 4,223 crore, as per data from the National Securities Depository Limited (NSDL).
In addition, domestic institutional investors (DIIs) resumed their buying activity on Friday, acquiring equities worth Rs 5,187.1 crore.
Despite these robust foreign inflows, the benchmark indices experienced a downturn on Friday due to profit booking in large-cap stocks.
The Nifty fell by 42.30 points or 0.17 percent, closing at 25,019.80, while the Sensex dropped 200.15 points or 0.24 percent, settling at 82,330.59.
During the intra-day session, the Nifty had dipped as much as 0.44 percent to 24,953.05 and the Sensex fell 0.47 percent to 82,146.95.
However, for the week ending May 16, both indices reported impressive gains - with the Nifty increasing by 4.21 percent and the Sensex rising 3.62 percent, marking their strongest weekly performance since October 2024.
Nandish Shah, Senior Derivatives and Technical Research Analyst at HDFC Securities, stated, “The Nifty continues to trade above its short-term moving averages, maintaining a bullish trend. The next resistance is anticipated at 25,207, while support is projected around 24,800.”
FPI participation in Indian equities has notably improved in May after a sluggish start to 2025.
In the first quarter of the year, foreign investors were net sellers, offloading equities worth Rs 78,027 crore in January, Rs 34,574 crore in February, and Rs 3,973 crore in March.
Point of View
The recent surge in Foreign Portfolio Investors' participation in Indian equities reflects a positive shift, showcasing resilience and potential in our markets. As we navigate global uncertainties, it is crucial to remain vigilant and informed about these developments.
NationPress
01/06/2025
Frequently Asked Questions
What is the significance of FPIs investing Rs 8,831 crore?
The investment indicates strong confidence among foreign investors in the Indian market, especially during uncertain global conditions.
How do domestic institutional investors relate to this trend?
Domestic institutional investors also resumed buying equities, further supporting the bullish sentiment in the market.
What were the performance trends of the Nifty and Sensex?
Despite strong foreign inflows, benchmarks like the Nifty and Sensex faced profit booking but recorded significant weekly gains.
