Foreign Portfolio Investors (FPI) turned net sellers in the Indian stock market into net sellers for the second straight month.
In January, February and March, they have been sellers.
Data provided by State Securities Deposit Co., Ltd. showed that FPI purchased shares worth Rs 1,986 crore in May. In April, FPI accumulated Rs 422.3 crore worth of shares.
After a huge downturn, FPI has facilitated the latest bull run in the stock market. By definition, foreign portfolio investment involves investors who purchase foreign financial assets.
The benchmark Sensex is now about 4,500 points below its all-time high of 85,978. Once, Sensex fell about 13,000 points from its high point. FPI purchases support the recent index.
In the past few weeks, the Indian stock market has outperformed the global market, as volatility in global markets continues to dominate over the possible upcoming U.S. reciprocity tariffs.
India’s comfortable inflation rate also helps the domestic equity index.
In 2024, Sensex and Nifty will grow by about 9-10%. In 2023, Sensex and Nifty scored 16-17% on a cumulative basis. In 2022, they only received 3%.
