IGI Logo

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

FPI flows into India reached a nine-month high of Rs 37316 crores in May, through 26th. (Source: NSDL) The sustained buying by FPIs has lifted the Nifty by 2.4% in May. India is among the best performing markets like Japan, Taiwan, South Korea and Brazil while other markets, both developed and emerging, are struggling.
FPIs have been buyers across sectors. They invested in sectors like automobiles, capital goods, health care, Oil & gas and telecom. Massive buying was witnessed in financial services, particularly banking.
Leading macro indicators in India like GST collections, PMI data and credit growth suggest a resilient economy which can deliver 6%GDP growth and mid-teen earnings growth in FY 24. The latest CPI inflation print ( 4.7% in April) has come as a shot in the arm for markets. It is a clear indication that interest rates have peaked in India.
In this favourable macro setting, FPI flows are likely to continue supporting the market.
A new record high for Nifty is possible. However, there is no scope for a sharp rally since valuations are not favourable at record levels.

Above views are of the author and not of the website kindly read disclaimer