FPIs invest Rs 38,971 crore in Indian equities in one week
Foreign investors returned to Indian markets as global technology stocks faced a sell-off due to worries over artificial intelligence spending.
Foreign portfolio investors (FPIs) invested Rs 38,971 crore into Indian equity markets this week, according to NSDL data reported by Moneycontrol.
The influx of capital comes as global technology stocks experienced a decline. This downturn was linked to apprehensions regarding the sustainability of data centre spending and investments related to artificial intelligence (AI).
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the week saw a reversal in institutional trends. He noted that FPIs became aggressive buyers while domestic institutional investors (DIIs) were sellers on all trading days.
Vijayakumar stated that the AI sell-off in the US and other markets, such as Japan, Taiwan, and South Korea, prompted the shift. He said the US sell-off was driven by concerns over data centre spending, noting that Democrats are expected to seek safeguards for AI.
The strategist added that India became an attractive destination because it is viewed as a non-AI trade. He cited impressive earnings growth and appealing large-cap valuations as further reasons for the interest.
This shift in investment supported a rally where the Nifty rose by 7.58 per cent in a week. Vijayakumar said FPIs became major buyers in the financials, IT, automobiles, and telecom sectors.