FI in Indian Equities Reach Three-Month High in March

• 06 Apr 2024

The latest data from NDSL show a surge in foreign investments into Indian equities, with telecom and consumer sectors attracting the most interest.

Key Points

• Record Inflows: Overseas investments in Indian equities reach Rs 35,078 crore ($4.21 billion) in March, the highest in three months.
• Strong Performance: Foreign portfolio investors buy Rs 2.08 lakh crores of shares in the 12 months ending March, fueling a 29% rise in the Nifty 50.
• Market Performance: Nifty 50 and BSE Sensex both rise approximately 1.6% in March, driven by robust economic data.
• Sector Inflows: Telecommunication and FMCG sectors attract significant inflows, with Rs 7.98 thousand crores and Rs 6.24 thousand crores, respectively.
• Telecom Surge: Bharti Airtel hits record high, identified as top pick by analysts due to strong earnings outlook.
• FMCG Performance: Despite inflows, FMCG index underperforms benchmarks in March but shows potential for re-rating in valuations.
• Financial Sector: FPIs buy high-weightage financials worth Rs 3.47 thousand crores in March, reversing earlier selling trend and leading to a 3% rise in the financials index.