After 6 months, Foreign Portfolio Investors turn Net Buyers in April

After a six-month selling spree, foreign investors have turned net buyers in April so far by infusing ₹ 7,707 crore in Indian equities as a correction in markets provided them with a great buying opportunity.

Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, said it would still be a little premature to call it a change in trend concerning FPI flows. Therefore, it will be prudent to watch how the scenario unfolds over the next few weeks or months to get more clarity.

As per the latest data with the depositories, foreign portfolio investors (FPIs) have made a net investment of ₹ 7,707 crore in Indian equities during April 1-8.

Srivastava said that the inflow indicates that maybe foreign investors are nearly done with the recalibration exercise of their portfolios owing to the current scenario. Also, he added that the recent correction in the equity markets had opened investment opportunities, which FPIs would have sought as a good entry point.

However, they were net sellers during the last two trading sessions, suggesting that there is still a lack of certainty on the direction of FPI flows.