FPIs invest Rs 38,971 crore in Indian equities this week
Foreign portfolio investors returned to Indian markets following a sharp sell-off in global technology stocks linked to artificial intelligence concerns.
Foreign portfolio investors (FPIs) invested Rs 38,971 crore in Indian equities this week, according to NSDL data reported by ANI and The Times of India. This influx comes as a global sell-off in technology stocks, driven by concerns over artificial intelligence (AI) spending and potential slowdowns in data centre investments, shifted investor interest toward India.
The shift occurred after overseas investors had previously been selling Indian shares to move money into AI-focused markets. The recent correction in global AI stocks, affecting markets including the US, South Korea, Taiwan, and Japan, has made Indian equities more attractive.
V K Vijayakumar, chief investment strategist at Geojit Investments Limited, said the decline in AI stocks in the US and other markets played a key role in bringing foreign investors back to India. He noted that India is regarded as a non-AI trade with impressive earnings growth and attractive large-cap valuations.
The market saw a reversal in institutional trends last week. While FPIs became aggressive buyers, domestic institutional investors (DIIs) remained sellers on all trading days, according to Vijayakumar. This activity helped push the Nifty up by 7.58 per cent in a week.
Vijayakumar added that FPIs have become major buyers in index heavyweights across the financial, IT, automobile, and telecom sectors.