New Delhi, March 16 (IANS) The trend of rising foreign portfolio investment in India witnessed in the first week of March continued in the second week. According to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, FPIs turned big buyers in March, having bought equity worth Rs 35,665 crores through March 15.
Vijayakumar highlighted that the erratic nature of FPI investment has been a prominent feature for many months, with FPIs changing their strategy in response to changes in US bond yields. With US bond yields spiking up in response to stubborn inflation, there is a possibility that FPIs may turn sellers in the coming days.
In the market trends for March, there is observed weakness in mid and smallcaps with resilience in largecaps. This trend has led FPIs to reduce selling in large-caps and even buy in limited quantities in sectors like banking, telecom, and automobiles, Vijayakumar mentioned. The rising trend of FPI investment in India continues to show positivity.
An important feature to note is that while FPI activity has been on the rise in March, there may still be fluctuations ahead based on US bond yield movements. Investors will need to keep an eye on how FPIs react to these changes in the market in the upcoming days. The Indian market continues to attract foreign portfolio investment, showcasing confidence in the country’s economic growth potential.
