Foreign Portfolio Investors Resume Buying Streak in Indian Stock Market
Foreign Portfolio Investors Resume Buying Streak in Indian Stock Market Foreign portfolio investors (FPIs) have once again emerged as net buyers in the Indian stock market, signaling renewed confidence in the country's economic outlook. Data from the National Securities Depository Limited (NSDL) indicates that FPIs purchased equities worth Rs 1,156 crore in India until May 3. Factors Driving FPI Sentiment The shift in FPI sentiment follows a brief period in April when geopolitical tensions in the Middle East led FPIs to become net sellers in Indian stocks. Despite being net buyers until mid-April, FPIs cumulatively sold stocks worth Rs 8,671 crore by the end of the month. "The market is currently at record highs, driven by a pre-election rally. Although not as robust as in the past, FPI activity is closely tied to changes in US bond yields. If US bond yields decline and the Indian economy and markets continue to perform well, FPIs are likely to become more aggressive buyers,...