Latest news with #FPIs
Hans India
2 hours ago
- Business
- Hans India
FPIs invest Rs 19,860 cr in May
New Delhi: Foreign investors continue to exhibit confidence in the country's equity market, injecting Rs 19,860 crore in May driven by favourable global economic indicators and strong domestic positive momentum follows a net investment of Rs 4,223 crore in April, data with the depositories showed. Prior to this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January. Going forward, FPIs are likely to continue their investment in India. However, at higher levels they might sell since valuations are getting stretched, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said. According to the data with the depositories, FPIs made a net investment of Rs 19,860 crore in equities in May. The latest flow has helped narrow the outflow to Rs 92,491 crore in 2025 so far. India's equity markets witnessed a sharp resurgence in FPI activity in April. The sustained buying spree that began in mid-April continued in May too, reflecting renewed investor confidence. Himanshu Srivastava, Associate director - Manager Research, Morningstar Investment, said that several factors influenced FPI flows in May. Globally, easing US inflation and expectations of interest rate cut by the Federal Reserve made emerging markets like India more attractive. Domestically, India's strong GDP growth, robust corporate earnings, and policy reforms enhanced investor confidence. 'Global macros like declining dollar, slowing US and Chinese economies and domestic macros like high GDP growth and declining inflation and interest rates are the factors driving FII inflows into India,' Vijayakumar said. In terms of sectors, FPIs have been buyers in autos, components, telecom and financials in the first half of May. Apart from equities, FPIs invested Rs 19,615 crore in debt general limit and Rs 1,899 crore in debt voluntary retention during the period under review.
Business Standard
2 hours ago
- Business
- Business Standard
Stocks set to open lower amid tepid Asian cues
GIFT Nifty: GIFT Nifty June 2025 futures were trading 64 points lower in early trade, suggesting a negative opening for the Nifty 50. Economy: India's GDP growth touched a four-quarter high of 7.4% in Q4 FY25, with full-year growth ending at 6.5%, according to data released by the government post market hours Friday. The GDP growth, higher than the previous quarter of 6.4%, was lower than the 8.4% growth logged in Q4 FY24. Meanwhile, Indias fiscal deficit for FY25 stood at 4.8% of GDP, meeting the revised estimate, according to data released by the Comptroller General of Accounts on Friday. The central governments fiscal deficit stood at Rs 15.77 lakh crore, or 100.5% of the revised annual target, compared with 95.4% a year before. Institutional Flows: Foreign portfolio investors (FPIs) sold shares worth 6,449.74 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 9,095.91 crore in the Indian equity market on 30 May 2025, provisional data showed. According to NSDL data, FPIs have bought shares worth Rs 18082.82 crore in the secondary market during May 2025. This follows their purchase of shares worth Rs 3243.03 crore in April 2024. Global Markets: US Dow Jones futures were down 124 points, signaling a weak start for Wall Street. Asian shares were trading lower Monday after U.S. President Donald Trump announced a fresh tariff hike on steel imports, sending jitters across global markets. Speaking to U.S. steelworkers late Friday, Trump said he would double tariffs on steel from 25% to 50%, effective Wednesday, June 4. Markets in China, Malaysia, and New Zealand were closed for holidays, muting some of the early regional reactions. Trump also took to Truth Social to confirm the June 4 rollout, claiming the hike was in response to Chinas alleged breach of a recent trade agreement. He didnt elaborate on how the deal was violated but added that he plans to speak with Chinese President Xi Jinping soon. Wall Street ended last week on a mixed note. The S&P 500 was nearly flat, inching down 0.01% to close a strong month. The Nasdaq Composite slipped 0.32%, while the Dow Jones eked out a 0.13% gain. Commerce Secretary Howard Lutnick backed the tariff decision over the weekend, saying the measures were not going anywhere, even as they face stiff legal resistance. A federal trade court had recently blocked much of Trumps tariff plans, but an appeals court swiftly reinstated them. The case now looks poised to head to the Supreme Court. Trump, undeterred, hinted hed use alternative mechanisms to enforce the tariffs if necessary. This legal showdown is unfolding just weeks ahead of a key July deadline to ink new trade deals. If those talks fall through, Trump has threatened sweeping new tariffs on several major economies. Domestic Market: Domestic equity benchmarks closed with modest losses Friday as investors adopted a cautious stance ahead of India's GDP data release. Sentiment was also weighed down by global trade uncertainties after a U.S. federal appeals court upheld tariff measures introduced during President Trumps tenure. The S&P BSE Sensex declined 182.01 points or 0.22% to 81,451.01. The Nifty 50 index shed 82.90 points or 0.33% to 24,750.70.
Mint
2 hours ago
- Business
- Mint
FPIs pump ₹19,000 crore in Indian stock market in May, highest since Sept. Will the trend sustain?
Improved domestic fundamentals, rising corporate earnings, and a weaker US dollar kept foreign investors bullish on Indian stocks for the second straight month in May, cementing India's position as Asia's favoured equity market. In May, FPIs bought Indian stocks worth ₹ 19,686 crore through the exchanges, marking the highest monthly inflow since September, when they had pumped in nearly ₹ 50,000 crore. FPIs turned into net buyers in April by infusing ₹ 4,223 crore, according to the depositories data. Before this, foreign portfolio investors (FPIs) had pulled out ₹ 3,973 crore in March, ₹ 34,574 crore in February, and a substantial ₹ 78,027 crore in January. Domestic institutional investors also remained net buyers in May, investing ₹ 47,441 crore. Strong inflows from both domestic and foreign investors pushed the Nifty 50 and Sensex to a 7-month high during the third week of May, helping both indices extend their winning streak to a third straight month and recover most of the losses incurred during October and February. Having largely been sellers in the months following Indian benchmarks hitting record highs in September, foreign investors turned bullish on Indian stocks in April. This shift was driven by growing optimism that India's domestically driven economy is better positioned to weather the global trade slowdown compared to its peers. The sustainability of FPI inflows, as per the analysts, remains uncertain amid ongoing global trade tensions. While these tensions have eased in recent weeks, they could flare up again in the near term, as the 90-day pause on tariffs is set to end in July. Major export-driven economies are feeling the pressure and are currently in talks with the U.S. to finalise trade agreements. India-U.S. trade talks are scheduled for June 5–6, 2025. Meanwhile, India is also proactively forging Free Trade Agreements (FTAs), having recently signed a deal with the UK, and is currently in discussions with the European Union. Nevertheless, risks to FPI inflows persist—including rising U.S. bond yields, which have surged recently amid concerns over the U.S. fiscal outlook, potential earnings downgrades, and geopolitical shocks—all of which could derail the positive momentum. CLSA has cautioned that India's 'safe haven' status could fade if U.S.-China tensions de-escalate. Ultimately, whether FPIs continue to invest will depend on global factors such as U.S. monetary policy and India's ability to maintain earnings growth. While the current buying spree reflects strong investor confidence, history suggests that FPI flows can be highly sensitive to shifts in the global economic landscape, as per the experts. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Indian Express
10 hours ago
- Business
- Indian Express
Foreign inflows into equity, debt markets rise to Rs 30,950 crore in May
After heavy outflows in the last eight months, inflows by FPIs into equity markets in May have hit the highest levels since September last year on the back of de-escalation in Indo-Pak tensions, possibility of a trade deal with the US, a weakening US dollar and better than expected corporate earnings quarter for most companies. In May, FPIs bought equity for Rs 19,860 crore through the exchanges, according to NSDL data. The change in FPI strategy in India which began in April continued in May, leading to a marginal 12 bps rise in their ownership in listed companies to 17.5 per cent on a sequential basis. FPIs remained sellers in India in the first three months of 2025. The big selling in stocks began in January (Rs 78,027 crore) when the dollar index peaked at 111 in mid-January. The intensity of selling declined and FPIs turned buyers in April with a buy figure of Rs 4,223 crore. Foreign players pulled out Rs 2.16 lakh crore from Indian equity market between October 2024 and March 2025. Total FPI inflows into equity and debt amounted to Rs 30,950 crore in May with debt inflows at Rs 12,155 crore. There was heavy FPI inflow of Rs 29,044 crore into the debt market in March this year. Despite the inflows in May, FPI outflows from equity in 2025 so far were at Rs 92,491 crore. 'Global macros like declining dollar, slowing US and Chinese economies and domestic macros like high GDP growth and declining inflation and interest rates are the factors driving FPI inflows into India,' said a leading research firm in its report. India's better-than- expected GDP growth in Q4 of FY25 at 7.4 per cent is an indicator that growth is rebounding and this can lead to revival of corporate earnings in FY26. While FPIs are likely to continue their investment in India, at higher levels they might sell since valuations are getting stretched. In May itself, India witnessed bouts of sharp selloff from FPIs on account of Indo-Pak tensions and the latest being rising US Treasury yields. On May 21, FPIs sold Indian equities worth Rs 10,000 crore in a single day. 'In the near term, there can be some headwinds on account of global geopolitical uncertainties but long-term outlook for Indian continues to remain intact with the markets continuing to factor in strong growth for Indian economy,' says Vaqarjaved Khan, senior fundamental analyst, Angel One Ltd. According to the NSE, FPI ownership in NSE-listed companies had been declining since March 2023 — barring a brief uptick in September 2024 — amid continued volatility in foreign flows. This reversed slightly in March 2025, with FPI share rising 12 bps quarter-on-quarter to 17.5 per cent, driven by gains in private banks where FPIs have high exposure. Excluding financials, FPI share fell 26 bps to a 13-year low of 15 per cent. FPIs also increased exposure to microcaps, with their share in companies outside the Nifty 500 hitting a 10-quarter high. Their holding in the Nifty 50 stayed flat at 24.3 per cent, while it fell 28 bps in the Nifty 500 to 18.5 per cent. Despite the recent resurgence in FPI inflows, near-term uncertainties such as geopolitical risks, rising US Treasury yields, any slowdown in earnings in India can hurt FPI inflows, Khan said. India's long term growth story backed by consumption and inhouse manufacturing continues to remain intact. Meanwhile, India's corporate earnings over the next 3-5 years is expected to compound at a growth rate of 14-17 per cent. Hence, whenever valuations become attractive, FPI inflows during such periods will see a huge boost like the recent one in April and May, Khan said. FPI flows in May till date were positive for all key emerging markets except Thailand. India, Brazil, Indonesia, Malaysia, Philippines, Taiwan and Vietnam witnessed inflows.
India Gazette
20 hours ago
- Business
- India Gazette
FPIs remains net sellers in Indian stock market for second month
New Delhi [India], June 1 (ANI): Foreign portfolio investors (FPIs) have turned net sellers in Indian stock markets for the second straight month in May. In January, February, and March, they have been net sellers all through. Data made available by National Securities Depository Limited showed that FPIs had bought stocks worth Rs 19,860 crore in May. In April, the FPIs had accumulated stocks worth Rs 4,223 crore. FPIs had fuelled the latest bull run in the stock market, after a sharp slump. As per definition, Foreign Portfolio Investment involves an investor buying foreign financial assets. The benchmark Sensex is now about 4,500 points below its all-time high of 85,978 points. At one time, the Sensex had fallen about 13,000 points from its high. The FPI buying has supported the indices of late. Indian stock markets outperformed global markets over the past few weeks, as volatility continued to reign in global markets over possible forthcoming US reciprocal tariffs. A comfortable inflation number in India also somewhat supported the domestic equity indices. In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each. (ANI)
