FPIs invest Rs 37,316 crore in May on strong domestic macro fundamentals, reasonable valuation

Foreign Portfolio Investors (FPIs) have invested Rs 37,316 crore in Indian equities in May, the highest in the past six months. This inflow is attributed to strong macroeconomic fundamentals and reasonable stock valuations. A positive resolution on the US debt ceiling and good domestic macro-economic data could lead to fresh asset flows from foreign investors. The recent quantitative tightening cycle in the US and India’s outperformance in global equities has improved the FPI flow outlook. The sustained buying by FPIs has pushed the NSE’s Nifty benchmark index up 2.4% in May so far.