Foreign investors continue to be net buyers of Indian stocks for 3 months

New Delhi [India]May 26 (ANI): Foreign Portfolio Investors (FPIs) have been net buyers in the Indian stock market for the third month in a row, data from the National Securities Depository (NSDL) shows.

FPI has bought Indian shares worth Rs 37.317 billion so far in May. In March and April, it purchased assets worth Rs.7936 crore and Rs.1163.1 crore respectively.

The recent U.S. banking crisis, followed by the Silicon Valley bank failure in early March, and India’s relatively strong economic outlook seem to have revived interest in domestic stocks.

Silicon Valley Bank, one of the world’s most prominent financial institutions for technology start-ups, went bankrupt on March 10 after a bank run by depositors after it was in trouble. Its closure had contagious effects and subsequently led to the closure of other banks.

In January and February, FPI sold shares worth Rs.2885.2 billion and Rs.5.294 billion respectively. NSDL data showed. Foreign investors were clearly cautious given the risks posed by the volatility of the Indian stock market at the time.

With few exceptions, Foreign Portfolio Investors (FPIs) have been selling shares in the Indian market for over a year, starting in October 2021 for various reasons.

Tight monetary policies in advanced economies, including rising demand for dollar-denominated products and a strong US dollar, have triggered consistent outflows from the Indian market. Investors usually prefer stable markets during periods of high market uncertainty.

According to historical data available on the NSDL website, in 2022, foreign portfolio investors sold Indian stocks worth Rs 12,143.9 billion on a cumulative basis. (Ani)