FPIs Infuse Record Amount into Indian Stock Market, Cyclicals in Favor

Foreign Portfolio Investors (FPIs) poured over 5,400 crore into the Indian stock market during the first half of April 2024. This influx is primarily attributed to the purchase of cyclicals and capital-intensive stocks, including those in the power, finance, industrial, auto, telecom, and real estate sectors. Notably, FPIs sold defensive stocks, IT, and FMCG during this period. As of April 15, FPIs’ asset under custody (AUC) reached a record high of 64.76 lakh crore or $776.22 billion. This buying spree coincided with geopolitical tensions and rising US bond yields, but analysts attribute the outperformance of beta stocks to a positive near-term growth outlook for domestic cyclicals.

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