Independence Day 2024: FPIs Pour ₹64,824 Crore into Indian Equities Despite August Sell-off – Top 5 Drivers

In the 12 months leading up to Independence Day 2024, Foreign Portfolio Investors (FPIs) invested ₹64,824 crore in Indian equities. However, August saw FPIs breaking their buying streak, as they sold ₹18,824 crore worth of Indian equities, leading to a net sell-off of ₹8,207 crore, including debt, hybrid, and debt-VRR categories.

Key Monthly Trends in FPI Investments

• July 2024: FPIs invested ₹32,365 crore in Indian equities and ₹22,363 crore in debt markets. The markets’ strong resilience attracted these inflows.
• June 2024: After two months of selling, FPIs became net buyers, investing ₹26,565 crore in equities and ₹14,955 crore in debt, as stability returned post-election.
• May 2024: FPIs sold ₹25,586 crore in equities and invested ₹8,761 crore in debt. Market uncertainty due to the Lok Sabha elections, high US bond yields, and the outperformance of Chinese stocks affected sentiments.
• April 2024: FPIs offloaded ₹8,671 crore in equities and ₹10,949 crore in debt, influenced by high US bond yields.
• March 2024: A record high of ₹35,098 crore was invested in equities as outflow pressures eased.
• February 2024: FPIs invested ₹1,539 crore in equities and ₹22,419 crore in debt. The addition of government bonds to JPMorgan and Bloomberg indices spurred these inflows.
• January 2024: FPIs were massive sellers but resumed buying in December 2023 after a period of selling.

Annual Overview

For the year 2023, FPIs invested a total of ₹1.71 lakh crore in Indian equities and ₹68,663 crore in debt, summing up to ₹2.37 lakh crore across all categories.

The overall investment trend reflects FPIs’ responses to various economic and market conditions, including global interest rate changes and domestic market dynamics.