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Quote on FPI By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

FPI investment in March stood at Rs 7109 crores inclusive of the Rs 15446 crores invested by GQG through bulk deals in Adani stocks. FPIs have been consistent buyers in capital goods and alternating between buying and selling in financial services. The sustained selling by FPIs appears to be over since they have turned buyers in the last few days. The near-term outlook for FPI looks much more positive now. Even though Indian valuation continues to be relatively high, the recent market correction has made valuations a bit more reasonable than earlier. An important factor is the impressive turnaround in India’s CAD which has improved substantially due to rising exports. The CAD which was 4.4% in Q2FY23 has turned into surplus in Q3 FY23. Therefore, the INR is likely to be stable, going forward. This may restrain FPIs from turning aggressive sellers. FPIs turning buyers in banking will help banking stocks scale higher levels assisted by good Q4 results.

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