IGI Logo

Quote on FPI  29 April 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

FPIs appear to have changed their  investment strategy in India in recent days. While they were sellers in the initial three months of this year, they have turned buyers in April and aggressive buyers in the last few days of April. FPIs have bought equity worth Rs 9752 crores till 29th April. (NSDL data)
An important macro factor that has tilted the FPI approach is the appreciation in rupee. Rupee which had touched a low of 82.94 to the dollar in late February this year has now appreciated to 81.75 to the dollar. India’s Current Account Deficit is declining and if this trend continues the rupee may appreciate further. FPIs are likely to bring more inflows into India in this context.
FPIs have been buying in financial services and auto and auto components.