IGI Logo

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

"2023 has witnessed big investment by FPIs thanks to the sharp uptick in flows in December. FPI  inflows which were negative in the previous 3 months have sharply turned positive in December with total buying of Rs Rs 66134 crores. This figure includes the buying through stock exchanges and investment in the primary market. The total FPI inflows in 2023 stand at Rs 171106 crores. ( Source: NSDL)
The steady decline in U.S.  bond yields have caused this sudden change in the strategy of FPIs. In December, FPIs were big buyers in financial services which explains the resilience of this segment in December. FPIs also bought in sectors like autos, capital goods and telecom.
Since 2024 is expected to witness further declines in U.S. interest rates, FPIs are likely to increase their purchases in 2024 too, particularly in the early months of 2024 in the run up to the General elections."

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