FPIs take a break in August after buying stocks worth ₹1.26 trillion in 2023

Aug 18, 2023

By: Sourabh Jain

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FPIs turn cautious

Foreign portfolio investors (FPIs) have turned cautious in August, unlike July when they bought stocks worth ₹46,000 crore.

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FPIs remain net buyers

While FPIs have remained net buyers, the inflows have been significantly less when compared to the last 4 months.

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Net inflow in August so far

The net inflows from FPIs in equities is ₹737.16 crore till August 16, as per data from NSDL.

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Inflows in July

Last month, FPIs invested ₹46,618 crore in India in equities. In the first half of August, the net investment from FPIs is ₹737 crore.

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Highest inflows in June

Equities recorded the highest inflows from FPIs in June this year so far at ₹47,148 crore. July recorded the highest inflows from FPIs since August 2022.

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What FPIs are buying

As per sectoral data from NSDL, the major segments where FPIs invested in July include financial services, oil & gas, capital goods and consumer goods.

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What FPIs are selling

As per sectoral data from NSDL, the major segments where FPIs divested in July include chemicals, metals & mining and textiles.

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Investments in FY24 so far

FPIs have invested ₹1,49,235 crore in equities in India in the first four months of FY24.

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High US bond yields

The high US bond yields and profit bookings by FPIs are among the reasons for the reduced inflows in August, as per VK Vijayakumar, chief investment strategist, Geojit Financial Services.

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