FPI in India: Foreign Portfolio Investors (FPI) have poured a lot of money into India. In the first 12 days of April, Rs 13,347 crore has come through FPI. This investment has been made in Indian equity. With this, so far in the year 2024, Rs 24,240 crore has come into the country through FPI. After the purchases made in February and March, now the same trend is visible in April also.
The stock market had fallen due to selling by FPI
According to the data, FPI had purchased about Rs 1539 crore in February and Rs 35,098 crore in March. In January, FPI had sold equity worth Rs 25,744 crore. There was a big fall in the Indian stock markets on Friday. The reason for this was said to be the selling done by foreign investors. This heavy selling was done because now there will be more scrutiny on the investments coming from Mauritius. BSE Sensex fell 793.25 points and closed at 74,244.90. NSE Nifty also recorded a fall of 234.40 points and closed at 22,519.40 points.
The impact of India-Mauritius tax agreement will be visible in future
VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services, told Economic Times that due to the tax agreement between India and Mauritius, FPIs had sold Rs 8,027 crore on Friday. This agreement will continue to impact FPI investment in the times to come. Apart from this, the ongoing tension in the Middle East and threats of possible war between Israel and Iran can also have a negative impact on FPI. The coming days may be difficult for FPIs.
If FPI goes, DII will compensate
However, he expressed hope that even if FPIs withdraw money, Domestic Institutional Investors (DIIs) can compensate for it. DII has no cash problem. Retailers and High Net Worth Individuals (HNI) are also optimistic about the growth of the Indian market. Therefore, there will not be much impact of FPI sales.
Disclaimer: The information provided here is being given for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing money. ABPLive.com never advises anyone to invest money here.
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