This news roundup covers key stories including surging foreign portfolio investor inflows into India, heavy to very heavy rainfall alerts for Mumbai and Delhi, India’s cricket match against South Africa, and the latest developments in the CBI case involving Delhi Chief Minister Arvind Kejriwal.
Institutional ownership witnessed a notable decline in the first quarter of 2024, primarily driven by a sharp fall in Foreign Portfolio Investor (FPI) ownership. FPI significantly reduced their positioning in the Financials sector, marking its lowest level in a decade. On the contrary, Domestic Institutional Investors (DIIs) continued to bolster their positions in the Financials sector, making it the favored sector due to favorable valuations and anticipated growth prospects.
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.
