IANS | 09 Jul, 2023
The flood of FPI flows into India continues with Rs 21,943 crore of
inflows (including bulk deals) till 8th of this month, says V.K.
Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
If
this trend continues, monthly FPI flows in July will exceed the figures
in May and June, which were Rs 43,838 crore and Rs 47,148 crore,
respectively, he added.
This
‘U’ turn in FPI flows which were negative Rs 34,626 crore in January
and February (combined) this year has been the primary driver of the
strong rally that we are witnessing in the market since the lows of
March.
FPIs
have been steadily buying in financial services, automobiles, capital
goods and construction. Recently they have stepped up buying in FMCG and
power.
The selling trend in IT continues.
FPI
strategy is focussed more on country-specific factors rather than
sectoral prospects within a country. That’s why they adopted the ‘Sell
India, Buy China’ strategy in Jan and February. During these two months
FPIs sold in financial services for Rs 15,744 crores, he said.
Now,
pursuing the ‘Sell China, Buy India’ strategy, the same FPIs have
bought stocks in financial services for Rs 19,229 crore in June alone
and this buying trend continues.
