Going ahead, FPIs are likely to be cautious in the near term since there is a risk-off sentiment in equity markets globally due to the stress in the US banking system and the crash in banking stocks, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
Most global equity markets witnessed a sharp recovery, even as macro sentiments remained volatile as frailties in European and US banks were under focus.
According to the data with the depositories, foreign portfolio investors (FPIs) invested Rs 7,233 crore in Indian equities till March 25.
The inflow in March is inclusive of the bulk investment of Rs 15,446 crore by GQG in the four Adani stocks, Vijayakumar said.
In the calendar year 2023, FPIs have sold equities to the tune of Rs 26,913 crore.
In terms of sectors, FPIs have been buyers in autos and auto components, financial services, metals and mining and power. However, they sold heavily in IT stocks.
A contrarian trend in favour of IT and pharmaceuticals is likely in the near term since the valuations of these segments have turned attractive after the recent corrections, he added.
Also, India and Indonesia witnessed inflows during the month under review, while the Philippines, South Korea, Taiwan and Thailand saw a net withdrawal.