FPIs Invest Over Rs 37,000 cr in May, Highest in 6 Months

Foreign portfolio investors (FPIs) have pumped Rs 37,316 crore in Indian equities in May so far, primarily due to strong macroeconomic fundamentals and reasonable valuation of stocks. This is the highest investment by FPIs in the last six months. They had made net investment of Rs 36,239 crore in equities in November 2022, data available with the depositories showed.

Going forward, a resolution on the US debt ceiling and good domestic macro-economic data could prove to be positive for the markets and may lead to fresh flows of assets from foreign investors, said Himanshu Srivastava of Morningstar India.

The outlook for FPI flows has significantly improved, primarily due to the completion of the quantitative tightening cycle in the US and India's recent outperformance in comparison to global equities. According to data from the depositories, FPIs invested a net sum of Rs 37,317 crore in Indian equities during May 2-26.