Stable macro data, earnings trigger FPI buying in Indian shares in April: NSDL

Posted on by

Foreign Portfolio Investors (FPIs) They were net buyers of Indian stocks in April, the first month of the new fiscal year, National Securities Depository Data (NSDL) showed on Friday. FPIs bought 11,631 crore ($1.42 billion) worth of shares on a net basis in April, the highest since November 2022.

They were net buyers in the previous month as well, although that was largely due to the US investment firm GQG Partners’ $1.87 billion investment in four Adani Group companies companies in early March.

“Stronger-than-expected corporate earnings, and stable macro-indices such as the PMI and GST collection numbers have led foreign institutional investors back into Indian stocks,” said Anita Gandhi, Director at Arihant Capital Markets.

pointer Nifty 50 It jumped 4.06 percent in April, the best month since November, supported by stable earnings and the return of foreign investment institutions to local stocks.

Analysts added that the recent decline in oil prices also supported sentiment in Indian stocks.

Foreign investment institutions sold shares worth Rs.37,632 crore in FY23, marking two consecutive years of net sales for the first time, after record purchases of Rs.2,74,032 crore in FY21.

Purchases and sales

After selling financial services stocks worth Rs 29,993 crore in FY23, financial investment institutions bought Rs 7,690 crore in the sector in April.

Analysts said easing contagion risks in the global financial system and strong corporate earnings from the sector boosted investor sentiment. The auto and capital goods sectors also saw purchases in primary manufacturing industries.

Is the IT market over?
 Is the IT market over?

On the flip side, IT saw selling pressure with foreign investors offloading Rs 4,908 crore stocks in April.

“Selling in IT stocks follows weak expectations due to recession fears, banking crisis in the US and slowdown in Europe,” Gandhi added.

The rally in April reversed losses in the Nifty benchmark in 2023. The Nifty 50 index is up 0.83 percent in the year so far.