FPI Investment: FPI's U-turn after heavy selling...

For the first time in the current fiscal year, foreign portfolio investors, or FPIs, have reversed course in the indian market. FPIs have been selling nonstop since the start of the fiscal year, but in june they concentrated on purchasing in the indian market. In the third month of the fiscal year, they invested about Rs 26 thousand crore in indian stocks.

The first two weeks of june saw sales.

The National Securities Depository Limited (NSDL) reports that in june, foreign portfolio investors (FFIs) purchased indian shares valued at a total of Rs 25,565 crore. The final two weeks of june saw a shift in the mindset of overseas portfolio investors. Prior to that, the selling phase of FPOs, which had been ongoing for the previous two months, appeared to be continuing throughout the first two weeks.

During the fiscal year, FPIs started purchasing for the first time.

During the first two weeks of june, FPIs sold shares valued at almost Rs fifteen thousand crore. Prior to that, foreign portfolio investors had sold indian shares for a total of Rs 25,586 crore in May. Concurrently, FPIs sold Rs 8,671 crore in the first month of the current fiscal year, April. In this sense, FPIs have switched from being sellers to buying in june following two months of selling.

FPIs continued to sell throughout the year, with sales of indian shares totaling Rs 25,744 crore in january 2024, the first month of the year. They continued to be buyers for two months after that, nevertheless. FPIs purchased shares in february 2024 for a total of Rs 1,539 crore. FPIs then purchased shares in march for a total of Rs 35,098 crore. However, they then resumed selling.

FPIs modified their position as a result of these factors.

When the whole budget for the fiscal year 2024–25 is set to be unveiled in a few days, FPIs have gone back to purchasing in the month of June. Starting tomorrow, the whole budget for 2024–25 will be presented by Finance minister Nirmala Sitharaman during the third week of the month. Bonds issued by the indian government were previously included in JM Financial's index. This has additionally prompted FPIs to modify their position.